Press Information Bureau
Government of India
Ministry of Power
27-August-2012 18:31 IST
Coal India Limited to Sign Fuel Supply Agreements for Full Quantity for 20 Years
The Minister of State, Shri K.C. Venugopal, in a written reply informed the Rajya Sabha today that in a meeting held on 1st February, 2012 at Prime Minister’s Office, it was inter-alia decided that Coal India Limited (CIL) should sign Fuel Supply Agreements (FSAs) for full quantity of coal mentioned in the Letter of Assurances (LOAs) for 20 years, to be renewed every five years with trigger level of 80% for levy of disincentives and award 90% for trigger level of incentives, with power plants that have entered into long-term Power Purchase Agreements (PPAs) with Distribution Companies (DISCOMS). He said there are no commissioned power units which have not entered into PPAs except the Jharsugda Thermal Power Station (4x600 MW) of M/s. Sterlite Energy Limited having PPA for 768 MW with DISCOM and for balance 1632 MW PPA with VALSEZ.