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.

The National Anti-Doping Bill, 2021 is listed for passage in Rajya Sabha today.  It was passed by Lok Sabha last week.  The Bill creates a regulatory framework for anti-doping rule violations in sports.  It was examined by the Parliamentary Standing Committee on Sports, and some of their recommendations have been incorporated in the Bill passed by Lok Sabha.  

Doping is the consumption of certain prohibited substances by athletes to enhance performance.  Across the world, doping is regulated and monitored by the World Anti-Doping Agency (WADA) which is an independent international agency established in 1999.   WADA’s primary role is to develop, harmonise, and coordinate anti-doping regulations across all sports and countries.   It does so by ensuring proper implementation of the World Anti-Doping Code (WADA Code) and its standards.  In this blog post, we discuss the need of the framework proposed by the Bill, and give insights from the discussion on the Bill in Lok Sabha.  

Doping in India

Recently, two Indian athletes failed the doping test and are facing provisional suspension.   In the past also, Indian athletes have been found in violation of anti-doping rules.  In 2019, according to WADA, most of the doping rule violations were committed by athletes from Russia (19%), followed by Italy (18%), and India (17%).  Most of the doping rule violations were committed in bodybuilding (22%), followed by athletics (18%), cycling (14%), and weightlifting (13%).  In order to curb doping in sports, WADA requires all countries to have a framework regulating anti-doping activities managed by their respective National Anti-Doping Organisations.  

Currently, doping in India is regulated by the National Anti-Doping Agency (NADA), which was established in 2009 as an autonomous body under the Societies Registration Act, 1860.  One issue with the existing framework is that the anti-doping rules are not backed by a legislation and are getting challenged in courts.  Further, NADA is imposing sanctions on athletes without a statutory backing.   Taking into account such instances, the Parliamentary Standing Committee on Sports (2021) had recommended that the Department of Sports bring in an anti-doping legislation.   Other countries such as the USA, UK, Germany, and Japan have enacted legislations to regulate anti-doping activities.  

Framework proposed by the National Anti-Doping Bill, 2021

The Bill seeks to constitute NADA as a statutory body headed by a Director General appointed by the central government.  Functions of the Agency include planning, implementing and monitoring anti-doping activities, and investigating anti-doping rule violations.  A National Anti-Doping Disciplinary Panel will be set up for determining consequences of anti-doping rule violations.  This panel will consist of legal experts, medical practitioners, and retired athletes.  Further, the Board will constitute an Appeal Panel to hear appeals against decisions of the Disciplinary Panel.  Athletes found in violation of anti-doping rules may be subject to: (i) disqualification of results including forfeiture of medals, points, and prizes, (ii) ineligibility to participate in a competition or event for a prescribed period, (iii) financial sanctions, and (iv) other consequences as may be prescribed.  Consequences for team sports will be specified by regulations.   

Initially, the Bill did not have provisions for protected athletes but after the Standing Committee’s recommendation, provisions for such athletes have been included in the Bill.  Protected persons will be specified by the central government.  As per the WADA Code, a protected person is someone: (i) below the age of 16, or (ii) below the age of 18 and has not participated in any international competition in an open category, or (iii) lacks legal capacity as per their country’s legal framework

Issues and discussion on the Bill in Lok Sabha

During the discussion on the Bill, members highlighted several issues.  We discuss these below-

Independence of NADA 

One of the issues highlighted was the independence of the Director General of NADA.  WADA requires National Doping Organisations to be independent in their functioning as they may experience external pressure from their governments and national sports bodies which could compromise their decisions.  First, under the Bill, the qualifications of the Director General are not specified and are left to be notified through Rules.  Second, the central government may remove the Director General from the office on grounds of misbehaviour or incapacity or “such other ground”.  Leaving these provisions to the discretion of the central government may affect the independence of NADA. 

Privacy of athletes

NADA will have the power to collect certain personal data of athletes such as: (a) sex or gender, (ii) medical history, and (iii) whereabout information of athletes (for out of competition testing and collection of samples).  MPs expressed concerns about maintaining the privacy of athletes.  The Union Sports Minister in his response, assured the House that all international privacy standards will be followed during collection and sharing of data.  Data will be shared with only relevant authorities.

Under the Bill, NADA will collect and use personal data of athletes in accordance with the International Standard for the Protection of Privacy and Personal Information.   It is one of the eight ‘mandatory’ standards of the World Anti-Doping Code.  One of the amendments moved by the Union Sports Minister removed the provision relating to compliance with the International Standard for the Protection of Privacy and Personal Information.

Establishing more testing laboratories across states

Currently India has one National Dope Testing Laboratory (NDTL).  MPs raised the demand to establish testing laboratories across states to increase testing capacity.  The Minister responded by saying that if required in the future, the government will establish more testing laboratories across states.  Further, in order to increase testing capacity, private labs may also be set up.   The Parliamentary Standing Committee on Sports (2022) also emphasised the need to open more dope testing laboratories, preferably one in each state, to cater to the need of the country and become a leader in the South East Asia region in the areas of anti-doping science and education.

In August, 2019 a six-month suspension was imposed on NDTL for not complying with International Standard for Laboratories (ISL) by WADA.  The suspension was extended for another six months in July, 2020 due to non-conformity with ISL.  The second suspension was to remain in effect until the Laboratory complies with ISL.  However, the suspension was extended for another six months in January, 2021 as COVID-19 impacted WADA’s ability to conduct an on-site assessment of the Laboratory.  In December, 2021 WADA reinstated the accreditation of NDTL.

Raising awareness 

Several athletes in India are not aware about the anti-doping rules and the prohibited substances.  Due to lack of awareness, they end up consuming prohibited substances through supplements.  MPs highlighted the need to conduct more awareness campaigns around anti-doping.  The Minister informed the House that in the past one year, NADA has conducted about 100 hybrid workshops relating to awareness on anti-doping.   The Bill will enable NADA to conduct more awareness campaigns and research in anti-doping.  Further, the central government is working with the Food Safety and Standards Authority of India (FSSAI) to test dietary supplements consumed by athletes.  

While examining the Bill, the Parliamentary Standing Committee on Sports (2022) recommended several measures to improve and strengthen the antidoping ecosystem in the country.  These measures include: (i) enforcing regulatory action towards labelling and use of ‘dope-free’ certified supplements, and (ii) mandating ‘dope-free’ certification by independent bodies for supplements consumed by athletes.