Coal India board has agreed to renew the fuel supply pacts which the fuel major had entered into with existing non-power consumers.
“After detailed deliberations, the board has accorded its approval for renewal of FSAs (fuel supply agreements) with the existing non-power consumers (including captive power plants) for a further period of three months,” CIL said in a letter to its subsidiaries.
The issue of renewal of FSAs with the existing non-power consumers, due to expire in March/April on completing the term of five years, was placed for consideration before the company’s board meeting held a fortnight back, it said.
“Accordingly, necessary action may be taken at your end for intimating the consumers falling under this category for renewal of the agreement for a further period of three months,” the letter said.
As far as CIL entering into FSAs with power producers is concerned, the Coal Ministry had earlier stated that the company has signed pacts with 56 power plants so far.
The deadline set by the Prime Minister’s Office for signing of FSAs between CIL and power producers expired in January.
About 143 FSAs are to be signed by CIL in respect of identified power projects of 60,000 MW capacity, which have been assured for coal supply during the 12th Five-Year Plan period.
Out of these 143 FSAs, 92 are to be signed by the end of 2012-13.