NTPC to sign fuel supply agreements with Coal India

National Thermal Power Corporation (NTPC) is likely to ink pact with Coal India by signing fuel supply agreements (FSA) for 4,300 megawatts on 2009 terms. In this fuel agreement, only trigger level has been changed to 80% against 90% as per government instructions.

Coal India has to fulfill the supply commitment at trigger level. NTPC is signing new FSAs for its brownfield projects. NTPC already has FSA with Coal India. This new FSA will change one clause that is the trigger for incentive and penalty. NTPC was disappointed with the Coal India’s new clauses in the FSA, which reduced the penalty clause to 0.01% and the freedom to halt supplies at any time.

NTPC is the largest power generating major in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution.