The Government has decided after consultation with the concerned Ministries that Coal India Limited (CIL) will sign Fuel Supply Agreements (FSAs) with power plants that have entered into long term Power Purchase Agreements (PPAs) with Distribution Companies (DISCOMS) and have been commissioned/would get commissioned on or before 31st March, 2015. It has been estimated that about 477 million tonnes of coal will be required in the terminal year of the 12th Plan (2016-17) for meeting the requirement of linkages to power sector by CIL, if 100% Power Purchase Agreements (PPAs) are in place. The actual coal commitment would depend upon the percentage of PPAs signed.
The estimated coal production by Coal India Limited by the end of terminal year of 12th Plan period (2016-17) is estimated at 615 Million Tonnes, which will be adequate to meet the demand of the said FSA holders. However, in case of any shortfall in fulfilling its commitments under the FSAs from its own production, CIL may arrange for supply of coal through imports or through arrangements for obtaining coal from State/Central Public Sector Undertakings (PSUs) who have been allotted coal blocks and have started production of coal but have not commissioned their end use plants.
This information was given by the Minister of State of Coal, Shri Pratik Prakashbapu Patil.