Coal India Ltd. (CIL) and NTPC, on Wednesday, signed fuel supply agreements (FSAs) for 17 units with an aggregate capacity of around 10,000 MW ending the over nine-month-old face-off on the issue mainly on grounds of quality and payments.

The deals were signed in the presence of the chairmen and managing directors of CIL and NTPC. FSAs pertaining to two eastern region plants of NTPC at Kalagaon and Farakka were signed last week.

The FSA, signed on Wednesday, would entail supply of 40 million tonnes of coal according to annual contractual quantity (ACQ) meeting 80 per cent of the requirement of these power plants. As per the FSA, while 65 per cent would be met through domestic supplies, 15 per cent might have to be imported. It is learnt that 11 more FSAs between joint ventures of NTPC and CIL subsidiaries would be signed soon taking the total number of FSAs between NTPC and CIL to 29. These could not be signed on Wednesday due to some procedural issues.

“It is all settled,” the two chairmen said.

NTPC chief Roy Chowdhury said that there were certain quality issues which had led to the delay in settlement of the entire matter.

The quality issue actually pertained to the supply of coal with a gross calorific value (GCV) less than 3100.

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