NTPC and Coal India are set to sign fuel supply agreement (FSA) on Wednesday, signalling the end of a year-long difference.
Coal India has agreed to supply coal with calorific value of 3100 kcal/kg, failing which the miner cannot claim incentive.
The third party sampling of fuel would take place at coal loading point. However, the companies are yet to sort out issues relating to pending payments of about Rs 4,000 crore as of June 30 that Coal India billed NTPC.
The public sector power producer has not signed fuel supply pacts for nearly 5,000 MW capacity because of its difference with Coal India on quality of coal supplied.
NTPC refused to clear the latter’s bills. In March, the power generator flagged that it will pay only for the quality of coal that is being received at the power plant and not for what is being billed by the miner.