CIL for supply of imported coal on cost plus basis: govt

New Delhi: Coal India (CIL) has sought the consent of power firms for supply of imported coal on cost plus basis under the modified fuel supply pacts, Parliament was informed today.

“Coal India Ltd has written letters to power companies… seeking their consent for supply of imported coal on cost plus basis under the modified Fuel Supply Agreement (FSA),” Minister of State for Coal Pratik Prakashbapu Patil said in written reply to the Lok Sabha.[caption id=“attachment_537321” align=“alignleft” width=“380”]  Coal trouble. Getty Images[/caption]

Cost-plus basis means cost of importing coal by Coal India plus additional charges.

“CIL’s proposal for supply of imported coal to power stations to meet the shortfall of domestic coal fulfilling its FSA obligations is an integral part of the New Coal Distribution Policy,” the minister said.

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CIL board in September had approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost-plus basis.

So far 30 power plants have entered into pacts with the coal behemoth.

The state-owned firm is likely to enter into pacts with 48 power units. Other power companies with which CIL has entered into pacts include Lanco and Adani, among others.

PTI