Following assurances to various power producers by Prime Minister Manmohan Singh of better fuel supply, Coal India Ltd. (CIL) will sign fuel supply agreements (FSAs) by next month for supply of fuel to power projects commissioned up to December, 2011.
“For power plants that have been commissioned up to December 31, 2011, FSAs will be signed before March 31, 2012…the FSAs would be signed for full quantity of coal mentioned in the Letters of Assurance (LoAs) for 20 years. If the supply is below 80 per cent, then Coal India would be penalised whereas in case the supply is above 90 per cent, the company would be provided incentive,” the Prime Minister's Office said in a statement on Wednesday.
