In a reply to the clarification sought by the union power ministry, CERC said Coal India (CIL) has the responsibility to meet the full requirement under FSAs even if it has to resort to imports.

Some days ago, the power ministry asked the CERC whether the existing policies permit CIL to meet its fuel supply agreements (FSAs) commitments (for post-March 2009 power projects) through supply of imported coal on cost-plus basis.

The ministry also wanted to know whether the additional cost of imported coal under the existing provisions of power purchase agreements (PPAs) can be allowed to be passed through.

The Central Electricity Regulatory Commission (CERC) outlined the need to amend the New Coal Distribution Policy (NCDP) in order to allow CIL meet the shortfall in domestic coal supply through imports on cost-plus basis.

The commission also called for changing the existing FSAs between CIL and power producers through supplementary agreements.

For the pass-through of additional cost for imported coal, the regulatory body said that power developers need to approach the appropriate commission (Central or State regulatory commissions) under the ?change in law? clause.