Coal India inks fuel supply agreements with 27 power units

After signing pact with six units of Bajaj Hindustan, State-run Coal India has signed fuel supply agreements (FSAs) with 27 power units, which also include Adani’s Mundra Power plant in Gujarat. The company has also inked FSAs with Lanco Anpara Power, Reliance Power's Rosa Power Project and CESC.

The government had issued a presidential directive to CIL in April to sign FSAs with the power producers assuring them of at least 80% of the committed coal delivery. As the PSU was unable to meet the deadline of March 31 to enter into agreements with power producers which were facing fuel crunch.
 
Now, as per the new directive, the company has to deliver fuel to 48 power units. Moreover, failing to provide power units a minimum of 80% fuel, of the total contracted, CIL will attract a penalty.

Recently, Coal India cancelled preliminary supply pacts with as many as 60 captive power plants and independent producers. The 60 CPPs whose assurances have been withdrawn include units of Bokaro Power Supply, a JV of SAIL and DVC, Bhushan Power and Steel, Essar Power, Grasim Industries, JSW Aluminium, J K Tyre and Industries and Maharashtra Energy Development Agency.