The long-pending dispute between NTPC and Coal India India (CIL) on entering fuel supplying agreements (FSA) may be resolved this month.

The public sector power major raised a number of issues regarding coal quality as a precondition to enter the FSA. These are currently being addressed via memoranda of understanding.

According to CIL sources, both the companies are now engaged in a final round of discussion in resolving the dispute and a solution is expected this month.

Difficult choice

Sources suggest that based on NTPC’s demand, the coal miner agreed to supply fuel having heat value of 3,100 kilo calorie per kg (G-14) or more. The choice , sources said, was difficult, considering NTPC’s huge (over 120 million-tonne) demand of domestic coal vis-à-vis the poor quality of mining resources in the country.

“We are hopeful that the deadlock may finally end,” a CIL official said. According to him, the rest of the issues are more or less resolved.

“We have already taken steps from moving over from joint sampling to third party sampling procedures. The operational details of this procedures are out of the context of FSA and will be decided upon in due course,” he said.