Coal India yet to sign FSAs for around 5,000 MW

New Delhi, June 26 (IANS) State miner Coal India Ltd. (CIL) has till date signed fuel supply agreements (FSAs) for 73,075 MW out of a total generation capacity 78,000 MW, the coal ministry said here.

In a communication, the ministry said FSAs for the remaining 4,925 MW could not be signed due to issues like "extension of coal supplies beyond the period admissible under tapering linkage policy".

Tapering linkage refers to short-term linkage provided to consumers who have been allocated captive coal blocks, which could not be developed along designated timelines.

"Such issues are being considered separately," the document said.

As per the New Coal Distribution Policy, 2007, CIL has to supply coal to power plants with which it has signed FSAs.

Last year, the government issued a Presidential directive to Coal India for signing the accords for a capacity of 78,000 MW.

Two deadlines set for August and September 2013 for signing the FSAs with the power producers have not been met.

However, the state miner, which has a near-monopoly on coal production, accounting for about 82 percent of the country's coal supply, is yet to sign agreements with 12 power units.