Coal India signs fuel supply pacts for 71,500 MW capacity

According to the new FSA, company will supply 65% of the contracted amount from domestic sources

State-owned Coal India has signed fuel supply agreements (FSAs) for capacity of 71,500 MW, a top company official said.

"(Of the 78,000 MW), 71,500 MW has been signed," Coal India Chairman and Managing Director S Narsing Rao told reporters here.

Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Two deadlines set for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to.

The Coal Ministry had set the deadline of August 31 for signing of the FSAs, which could not be met. Further, the second deadline of September 6 was also not achieved.

CIL has recently tweaked the provision pertaining to the settlement of disputes in the model fuel supply agreements for the existing and new state-owned power utilities.

According to the new FSA, Coal India will supply 65% of the contracted amount from domestic sources and another 15% through imports with pass-on pricing model.