The power ministry on Tuesday said India’s leading coal supplier Coal India Ltd (CIL) has agreed to enter into fuel supply agreements (FSAs) with power companies even if they do not have electricity purchase agreements in place.
Speaking at the economic editors’ conference, power minister Veerappa Moily said most issues related to the supply of coal have been sorted out with the ministry and CIL.
FSAs have long been a bone of contention between the ministries of coal and power and a settlement could provide a relief for power firms.
“We have sorted out many things related to the coal sector during our recent meetings with the coal minister and coal secretary,” said Moily.
Moily also said the country’s Southern Grid would be connected to the National Grid by December 2013, thereby providing a uniform flow of electricity across India.