Web Exclusive | July 2013
CIL ready to change FSA terms for companies
Coal India (CIL), after having tweaked the fuel-supply agreement or FSA in favour of NTPC, is now open to changing the terms for companies that come forward to make similar changes in their coal-supply agreements with the state-run monopoly. The Coal India board had last week agreed to make changes in FSA with respect to coal quality and incentives for NTPC. This opened the door for other consumers that might want to make similar changes in their coal-supply agreement if they are not satisfied with the present format.
CIL Chairman S Narsing Rao said that changes in the fuel-supply agreement that CIL made in case of NTPC were with respect to the quality of coal supplies and the incentive norms. If any of consumers comes forward seeking similar changes in FSA, CIL will make the necessary changes.
He, however, clarified that the changes in the quality norms would have to be based on the quality of coal mentioned in the letter of assurance (LoA) for supplies to the company. The quality mentioned in the LoA has been fixed with respect to the coal quality that the boilers of the thermal power stations can take, he said.