Coal India, power producer to sign fuel supply dealJanuary 20th, 2009 - 7:32 pm ICT by IANS
Kolkata, Jan 20 (IANS) India’s largest coal producer Coal India Limited (CIL) and the largest power producer NTPC Ltd have decided to sign an agreement to always maintain 75 percent fuel supply for the power entity, a central minister said here Tuesday.”The matter is more or less solved. We might sign the agreement in a week’s time,” said Union Minister of State for Coal Santosh Bagrodia on the sidelines of Energy - East and North East 2009 seminar organised by Indian Chamber of Commerce (ICC).
“The trigger level will be at 75 percent,” Bagrodia said and explained that under the accord CIL would not allow the supply to fall below 75 percent. If the CIL failed in this, it would have to pay the NTPC a penalty.
NTPC Ltd earlier asked for a trigger level - or the level of supply - of 90 percent of the total committed coal supply to power utilities.
NTPC had earlier said its requirement of coal 2008-09 (Apr-Mar) was around 125 million tonnes, of which close to eight million tonnes is being imported.