Union Coal Minister Shriprakash Jaiswal today said that he has instructed Coal India Limited (CIL) to increase the supply of coal under new fuel supply agreements to nearly 75 per cent from the current 50 per cent.
“We have instructed the CIL to revise the quantity of coal to be supplied to power plants under new fuel supply agreements to 75 per cent from the existing 50 per cent,” Jaiswal told reporters on the sidelines of an event here today. Due to the shortage of coal, the CIL has been signing FSAs of 50 per cent.
As a result, many power projects had stopped generation due to the coal shortage. The Ministry has also asked the CIL to reduce the quantity of coal it auctions and divert it to the existing power plants. “We are aware of the issue of shortage of coal for the existing plants. We have asked the CIL to reduce the quantity of coal it sells through auction and supply it to the existing plants,” he said.
Currently, the CIL auctions nearly 15 per cent of the total production. The Ministry has also reduced the target of coal production from CIL to 440 million tonnes for FY12, he said.
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