Coal India Board on Tuesday reached a consensus on supplying a minimum of 80 percent of the contracted quantity of the fuel to power firms, meeting 15 percent through imports.
As a result, the state-run firm will import around 20 million tonnes of coal this year.
“The trigger level (of the FSA with power plants) will be 80%,” Coal India (CIL) Chairman and Managing Director (CMD) S Narsing Rao told reporters after the Board meeting of the PSU here.
Rao said the Board reached an agreement on supplying 65% of the requirement of power firms through domestic production and meeting the shortfall of 15 per cent through imports.
“Domestic supply will be 65 per cent and the remaining 15% would be met through imports,” he said adding: “This year we will import 18-20 million tonnes (MT)”.
Accordingly, required changes will be made in fuel supply agreements (FSAs) done in April, he said.
The development follows a direction from the Prime Minister’s Office to the Coal giant early this month to sign the pacts with power firms for supply of 65-80% of the contracted quantity, amid delays in signing of the agreements.
Asked about the mechanism for coal import, Rao said, “It can be through coal India or through other agencies”.
However, he also said “import is only practical when there is price pooling mechanism”.
The Planning Commission and Power Ministry had suggested pooling of the prices of imported and domestic coal to neutralise the impact of higher prices of imported coal.