Coal supply agreement for Rosa project
PM News Bureau
Central Coalfields Ltd is planning to change the original terms and conditions of the model coal supply agreement (CSA) signed for the 2x283.5 mw Rosa thermal power project. CCL wants to reduce the term of the agreement from 30 years to 15 years. However, Birla Project Development Company Ltd, promoters of the project, want the CSA to continue for 30 years, the estimated life of the plant. Also, the promoters feel that any reduction in the period of supply agreement may affect the chances of early financial closure of the project. Meanwhile, the coal ministry has extended coal linkage for the project till December 2005. The coal linkage was set to expire this July.
[1 August 2005]