CIL to modify fuel supply pacts with power firms | business | Hindustan Times
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CIL to modify fuel supply pacts with power firms

business Updated: Aug 03, 2012 23:00 IST
HT Correspondent
HT Correspondent
Hindustan Times
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India’s largest coal producer Coal India Ltd (CIL) will modify the fuel supply agreements (FSAs) before signing them with power companies to incorporate the changes proposed by its board at this week’s meeting, thereby breaking the deadlock over the issue of minimum assured supply of fuel.

CIL said it would assure 80% supply of the contracted quantum of coal to thermal power plants and soon sign FSAs with power firms for shipping to them a minimum of 80% coal out of the total contracted quantum.

The coal major said it would meet 65% of the supplies from domestic sources and import the remaining 15%. It did not elaborate on whether it would club the price of domestic and imported coal.

The decision follows a direction from the Prime Minister’s Office to the company to sign FSAs for the supply of 80% of the contracted quantity, or the trigger level, failing which the supplier would be penalised.