New Delhi (PTI): Coal India Ltd, the country's largest coal producer, has assured supply of 313 million tonnes of the fuel to power firms under a long-term contract for 2009-10.
"We will be giving 307 million tonnes of coal under the long-term fuel-supply agreement (FSA) to the facilities commissioned till March 2009. Additional six million tonnes have been earmarked for plants coming up till March 2010," CIL Chairman Partha S Bhattacharyya told PTI in an interview.
The coal major has set April 30 as deadline for 72 power utilities, led by navratna firm NTPC, to conclude the FSA.
The fuel supply agreement is a long-term pact between coal producers and consumers aimed at ensuring dedicated supply of fuel. It has been delayed by almost a year now due to differences over fixing of a "trigger level", the minimum assured level of coal supply and offtake, failing which both parties attract penalty.
"The issues have been resolved. We have agreed to a 90 per cent trigger level of the assured 307 million tonnes,"he said.
The long-term contract would be for a period of 20 years where the quantity to be supplied would be reviewed every five year.
About 1,120 companies including steel and cement firms have already signed the FSA with CIL.
To meet the growing coal requirement of consumers, Mr. Bhattacharyya said CIL would also import six million tonnes of coal this fiscal.
Power producer NTPC has also revised upwards its coal import target for this fiscal to 12.5 million tonnes from the present 8.2 million tonnes in the last fiscal as the power ministry envisages all its utilities to import 35 million tonnes of the dry fuel in 2009-10.
Source : The Hindu