Coal India Ltd.

Amid the dispute over issue of coal quality between Coal India (CIL) and NTPC, the world’s largest coal miner has made changes with regard to certain provisions of model fuel supply agreement (FSA) applicable to new power plants. The modifications in the model FSAs would be applicable not only to new power plants but also to new non-power consumers.

CIL has also received references in this regard (changes in model FSA) from the subsidiary coal companies. The modifications are with regard to power purchase agreement and compensation for oversized stones, among others.

The quality of coal has become a contentious issue between the two state-run companies - NTPC and CIL. Power producer NTPC had refused to sign the FSA with CIL saying the quality of coal supplied by the coal PSU was poor and could even cause damage to its machinery.