Coal news and updates

Dhariwal Infrastructure’s FSA impasse continues

September 10: Signing of the fuel supply agreement between Coal India and Dhariwal Infrastructure is still pending and remained unresolved even at the latest Standing Linkage Committee-Long Term (SLC-LT) because of the non-resolution of issues with regard to the latter’s name change from Dhariwal Infrastructure Private Limited to Dhariwal Infrastructure Limited.

At the recent SLC-LT meeting, a representative from Dhariwal was unable to satisfactorily answer questions, forcing the stalemate to be extended further.

Dhariwal had sought long-term linkage for its 4x135 MW units and the SLC-LT, at a meet in 2007 had recommended issuance of an LoA foe 2x135 (phase I) units.

However, in 2008, on the advice of the Central Electricity Authority (CEA), the plant size was changed from 540 MW to 600 MW (2x300 MW).

In 2008, the SLC-LT noted that an LoA had already been issued for 270 MW (2x135 MW) but the CEA noted that since both units of 300 MW were coming up in the 11th Five-Year Plan, an LoA for 330 MW may be considered and the SLC-LT likewise had authorised CIL for issuance of the same.

Meanwhile, in 2013, the company sought a name change which the competent authority did not agree to since it involved violation of LoA norms with SECL. Also, the entire holding of Dhariwal Infrastructure Private Limited had been transferred to Haldia Energy, a subsidiary of CESC Limited, without the approval of the Ministry of Coal.

Subsequently, the matter has been referred to the Ministry of Law as well as the Ministry of Corporate Affairs.

Meanwhile, the government is in the process of formulating a policy to address issues pertaining to a company’s name change due to amalgamation or takeover, change in ownership/shareholding pattern etc.