With constant complaints from various States, the Prime Minister Manmohan Singh has directed the Planning Commission to make a quick review of fuel shortages faced by power plants.
The review has to be completed in three weeks and the report submitted to the Prime Minister.
“Several Chief Ministers have drawn attention to the problem of fuel availability affecting power plants. This indeed is a problem, which needs to be tackled. I am requesting the Planning Commission to make a quick review of the situation and submit a report to me within three weeks,” Singh said in his closing remarks at the 57th National Development Council (NDC) meeting here.
The ‘request’ comes amid acute fuel shortages that are impacting the country’s power generation and many projects are running below their capacity. “I would request all Chief Ministers to write to the Deputy Chairman of the Planning Commission giving details of plants, which they feel are adversely affected,” Singh said.
Fuel scarcity is a major issue hurting the power sector, which is expected to see generation capacity addition of about 88,000 MW in the 12th Plan (2012-17). There are also differences between many power producers and Coal India, delaying the signing of fuel supply agreements (FSAs).
Fuel supply pacts are yet to be signed for generation capacity of about 8,000 MW that are ready to be commissioned. On December 17, the Prime Minister’s Office directed power companies to enter into FSAs within a month. The directive came after its November deadline for FSAs was missed, amid differences over various issues including coal quality.
Besides, delay in environmental clearances is impacting the development of coal blocks required for power generation. Later Planning Commission Deputy Chairman Montek Singh Ahluwalia said that projects facing problems on fuel (due to delay in clearances from ministries such as coal and petroleum) could be a good case for the newly formed Cabinet Committee on Investment.