Coal news and updates

CIL signs 162 fuel supply agreements with power plants: Report

Coal India Ltd (CIL) has so far signed 162 fuel supply agreements (FSAs) with power plants.

The government had earlier directed the coal major to sign supply pacts with power projects of 78,000 mw capacity. As many as 172 FSAs are to be signed in this regard.

"Out of 172 fuel supply agreements, Coal India has so far signed 162 pacts," an official said.

The remaining fuel supply pacts could not be signed as some of power producers are yet to achieve milestones like forest clearances, the official said.

The Coal Ministry had earlier said that CIL was yet to enter into fuel supply pacts with some of the power units as issues like change in ownership and extension of coal supplies were still being examined by it.

Two deadlines set for the signing of FSAs by CIL with the power producers could not be adhered to. The government had set the deadline of August 31, 2013 for signing of FSAs, which could not be met.

The second deadline was set for September, last year.

The company, which accounts for 80 per cent of the domestic coal production, dispatched 353.83 million tonnes (MT) of coal to the power sector in FY14.

CIL produced 462 MT in the last fiscal year. It targets an output of 507 MT in the current fiscal year.

Source: PTI