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Coal India Ltd (CIL) has entered into fuel supply agreements (FSAs) with ten power firms for supplying a minimum assured quantity of fuel to power producers as per the government directive.
“It’s ten on last count...everyday they are doing,” said Mr Zohra Chatterjee, Additional Secretary, Ministry of Coal, on the sidelines of a CII event here today.
The coal producer has signed agreements with companies which include Lanco Anpara Power and Bajaj Hindustan.
Earlier this month, the government issued a Presidential directive to Coal India to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80 per cent of the committed coal delivery.
CIL is to supply fuel to 48 power producers as per the directive, which obligates it to commit a minimum of 80 per cent of fuel supply to power producers, failing which would attract a penalty.
The company has already sent out the model FSA format to power firms. The model includes clauses like suspension of supply to power firms if they were found diverting the fuel for any purpose other than the specified end—use plant.
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