There has been no resolution so far to the issue of assured fuel supply from Coal India Limited (CIL) to power producers.  According to reports, while CIL released a model supply agreement in April 2012, so far only around 13 Fuel Supply Agreements (FSAs) have been signed.  Originally around 50 power units were expected to sign FSAs with CIL.  Power producers have objected to the model FSA released by CIL, particularly its force majeure provisions and the dilution of financial penalties in case of lower than contracted supply. Background The adverse power supply situation has attracted greater attention in the past few months.  According to Central Electricity Authority's data, the gap between peak demand and peak supply of power in March 2012 was 11 per cent.  The decreasing availability of fuel has emerged as a critical component of the worsening power supply situation.  As of March 31, 2012, there were 32 critical thermal power stations that had a coal stock of less than 7 days.  The gap between demand and supply of coal in the past three years is highlighted below: Table 1: Coal demand/Supply gap (In millions of tonnes)

 

2009-10

2010-11

2011-12

Demand

604

656

696

Supply

514

523

535

Gap

90

133

161

Source: PIB News Release dated May 7, 2012 Coal accounts for around 56 per cent of total installed power generation capacity in India.  Increased capacity in thermal power has also accounted for almost 81 per cent of the additional 62,374 MW added during the 11th Plan period.  Given the importance of coal in meeting national energy needs, the inability of CIL to meet its supply targets has become a major issue.  While the production target for CIL was 486 MT for 2011-12, its actual coal production was 436 MT. Fuel Supply Agreements In March 2012, the government asked CIL to sign FSAs with power plants that have been or would be commissioned by March 31, 2015.  These power plants should also have entered into long term Power Purchase Agreements with distribution companies.  After CIL did not sign FSAs by the deadline of March 31, 2012 the government issued a Presidential Directive to CIL on April 4, 2012 directing it to sign the FSAs.  The CIL board approved a model FSA in April 2012, which has not found acceptance by power producers. According to newspaper reports, many power producers have expressed their dissatisfaction with the model FSA released by CIL.  They have argued that it differs from the 2009 version of FSAs in some major ways.  These include:

  • The penalty for supplying coal below 80 per cent of the contracted amount has been reduced from 10 per cent to 0.01 per cent.  The penalty will be applicable only after three years.
  • The new FSA has extensive force majeure provisions that absolve CIL of non-supply in case of multiple contingencies – including equipment breakdown, power cuts, obstruction in transport, riots, failure to import coal due to “global shortage or delays… or no response to enquiries (by CIL) for supply of coal.”
  • CIL would have the discretion to annually review the supply level that would trigger a financial penalty.  There was no provision for such a review in the earlier FSA.

Most power producers, including NTPC, the country’s biggest power producer, have refused to sign the new FSA.  Reports suggest that the Power Minister has asked the Prime Minister’s Office to mandate CIL to sign FSAs within a month based on the 2009 format.  CIL has received a request from NTPC to consider signing FSAs based on the same parameters as their existing plants, but with the revised trigger point of 80 per cent (down from 90 per cent earlier). Underlying this situation is CIL’s own stagnating production.  Various experts have pointed to the prohibition on private sector participation in coal mining (apart from captive projects) and the backlog in granting environment and forest clearances as having exacerbated the coal supply situation.

Recently, Delhi witnessed large scale protests by various groups demanding stricter punishment and speedier trial in cases of sexual assault against women.  In light of the protests, the central government has constituted a Commission (headed by Justice Verma) to suggest possible amendments in the criminal law to ensure speedier disposal of cases relating to sexual assault.  Though the Supreme Court, in 1986, had recognised speedy trial to be a fundamental right, India continues to have a high number of pending cases. In 2012, the net pendency in High Courts and subordinate courts decreased by over 6 lakh cases. However, there is still a substantial backlog of cases across various courts in the country.  As per the latest information given by the Ministry of Law and Justice, there are 43.2 lakh cases pending in the High Courts and 2.69 crore cases pending in the district courts.[1]

After the recent gang-rape of a 23 year old girl, the Delhi High Court directed the state government to establish five Fast Track Courts (FTCs) for the expeditious adjudication of cases relating to sexual assault.   According to a news report, other states such as Maharashtra and Tamil Nadu have also begun the process of establishing FTCs for rape cases.  In this blog, we look at the status of pending cases in various courts in the country, the number of vacancies of judges and the status of FTCs in the country. Vacancies in the High Courts and the Subordinate Courts One of the reasons for the long delay in the disposal of cases is the high number of vacancies in position for judges in the High Courts and the District Courts of the country.  As of December 1, 2012, the working strength of the High Court judges was 613 as against the sanctioned strength of 895 judges.  This reflects a 32% vacancy of judges across various High Courts in the country.  The highest number of vacancies is in the Allahabad High Court with a working strength of 86 judges against the sanctioned strength of 160 judges (i.e. vacancy of 74 judges).   The situation is not much better at the subordinate level.  As on September 30, 2011, the sanctioned strength of judges at the subordinate level was 18,123 judges as against a working strength of 14,287 judges (i.e. 21% vacancy).  The highest vacancy is in Gujarat with 794 vacancies of judges, followed by Bihar with 690 vacancies. Fast Track Courts The 11th Finance Commission had recommended a scheme for the establishment of 1734 FTCs for the expeditious disposal of cases pending in the lower courts.  In this regard, the Commission had allocated Rs 500 crore.   FTCs were to be established by the state governments in consultation with the respective High Courts.  An average of five FTCs were to be established in each district of the country.  The judges for these FTCs were appointed on an adhoc basis.  The judges were selected by the High Courts of the respective states.  There are primarily three sources of recruitment.  First, by promoting members from amongst the eligible judicial officers; second, by appointing retired High Court judges and third, from amongst members of the Bar of the respective state. FTCs were initially established for a period of five years (2000-2005).  However, in 2005, the Supreme Court[2] directed the central government to continue with the FTC scheme, which was extended until 2010-2011.  The government discontinued the FTC scheme in March 2011.  Though the central government stopped giving financial assistance to the states for establishing FTCs, the state governments could establish FTCs from their own funds.  The decision of the central government not to finance the FTCs beyond 2011 was challenged in the Supreme Court.  In 2012, the Court upheld the decision of the central government.[3]  It held that the state governments have the liberty to decide whether they want to continue with the scheme or not.  However, if they decide to continue then the FTCs have to be made a permanent feature. As of September 3, 2012, some states such as Arunachal Pradesh, Assam, Maharashtra, Tamil Nadu and Kerala decided to continue with the FTC scheme.  However, some states such as Haryana and Chhattisgarh decided to discontinue it. Other states such as Delhi and Karnataka have decided to continue the FTC scheme only till 2013.[4]

Table 1: Number of Fast Track Courts and the pending cases in FTCs                     (As on March 31, 2011)

State No of FTC No of cases transferred until March 31, 2011 Pending cases
Arunachal Pradesh 3 4,162 2,502
Bihar` 179 2,39,278 80,173
Assam 20 72,191 16,380
West Bengal 109 1,46,083 32,180
Goa 5 5,096 1,079
Punjab 15 58,570 12,223
Jharkhand 38 1,10,027 22,238
Gujarat 61 5,37.636 1,03,340
Chattisgarh 25 9,4670 18,095
Meghalaya 3 1,031 188
Rajasthan 83 1,49,447 26,423
Himachal Pradesh 9 40,126 6,699
Karnataka 87 2,18,402 34,335
Andhra Pradesh 108 2,36,928 36,975
Nagaland 2 845 129
Kerala 38 1,09,160 13,793
Mizoram 3 18,68 233
Haryana 6 38,359 4,769
Madhya Pradesh 84 3,60,602 43,239
UP 153 4,64,775 53,117
Maharashtra 51 4,23,518 41,899
Tamil Nadu 49 4,11,957 40,621
Uttarakhand 20 98,797 9006
Orissa 35 66,199 5,758
Manipur 2 3,059 198
Tripura 3 5,812 221
Total 1192 3898598 6,05,813

Sources:  Lok Sabha Unstarred Question No.498, March 3, 2012; PRS

 


[1].  Rajya Sabha Starred Question no 231 dated December 10, 2012.

[2].  Brij Mohan Lal v Union of India (2005) 3 SCR 103.

[3].  Brij Mohan Lal v Union of India (2012) 6 SCC 502. [4].  Rajya Sabha Unstarred Question no 2388 dated September 3, 2012.