Coal India Ltd.

BSE: 533278 | NSE: COALINDIA
Large Cap | Mining & Minerals
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Coal India to supply power companies entire contracted quantity of coal

Date: 18-04-2013

Coal India is confident of supplying entire contracted quantity of coal to power stations, including both private and state owned, irrespective of a valid fuel supply agreement (FSA). However, the only condition that the coal behemoth has put is that the power units should have a power purchase agreement (PPA) with state distribution companies. This development assumes significance given that company had earlier stated its intention of supplying only 65% of the contracted quantity of coal from domestic supplies, while importing the rest.

Recently, Coal Ministry directed CIL to ink fuel supply pacts with the power generation companies, including NTPC, before finalizing power purchase agreements with them. In December last year, the Prime Minister's Office had directed power producers to sign FSAs with Coal India in a month's time.