Coal India directed to sign FSAs for 78,000 MW

The coal ministry has directed state miner Coal India (CIL) to sign fuel supply agreements (FSAs) for about 78,000 MW power to ensure committed supply of coal to the sector, a coal ministry statement said Friday .

"This (FSAs) will not only increase the power generation further but will also fast track several power projects which are under development," the statement said.

CIL had, in February 2012, been directed to sign 131 FSAs with power plants commissioned or to be commissioned by March 2015.

The ministry said that as on Thursday CIL had signed 82 FSAs with power stations with a capacity of 34,793 MW. This includes 16 power stations belonging to state-run NTPC and its joint venture companies, the ministry said.

Many power companies had delayed signing the FSAs owing to differences with CIL about the agreement clauses.

CIL has also been directed to sign the fuel agreements within four weeks after the power producers fulfill the requisite conditions. "A Presidential directive has been issued by the ministry in this regard," the statement said.