NEW DELHI, JAN 4: The Industrial Credit and Investment Corporation of India (ICICI) and the Bureau of Indian Cost and Prices (BICP) have been appointed by the Union finance ministry, as consultants, to work out a compromise coal price for the 1082 MW fast track power project at Bhadravati.This move follows differences between the Ispat group and Coal India over valuation of fuel supply linkages.
Highly placed official sources said the consultants' report will be vetted by a high-power board for a final decision on the pricing alongwith a host of other important issues related with the revised power purchase agreement (PPA) for this project between the project's developers and the Maharashtra State Electricity Board (MSEB).
The board will be chaired by the cabinet secretary and will have secretaries of all the concerned ministries along with the chairman, Central Electricity Authority (CEA).
Sources disclosed that a review of the fast track projects was done at a recent cabinet secretariat meeting
held on December 29. A host of issues related to the coal pricing, coal availability amongst other issues were also discussed.
However, whereas issues related to the coal pricing will be decided after the report of the consultants, the issues related to the coal availability and auxillary power consumption still remain unresolved and the power ministry has now sought CEA's view in this regard.
When contacted, senior officials in the power ministry explained that since the coal availability for this project after a certain period is not assured, the developers of this project want to add what is called the `termination clause' in the PPA.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
