Coal India, has confirmed that 15 FSAs have been signed with the power companies but even in the best possible scenario, Coal India will not be able to supply above 65% for the new FSA requirement. Negotiations are on between the company and related ministries to resolve the issues, reports CNBC-TV18.
Narsing Rao, chairman and managing director, Coal India, said, "our ministry has written to the coal ministry requesting them to advice Coal India to restore the old FSAs with a modified trigger level from 90% to 80%. We have our own constraints. This year, at a best possible production and off take target, we possibly can only meet up to 65% of the FSA or Annual Contracted Quantity Requirement (ACQ). We have a target growth rate of 6.8% for this year. Despite that, we would only be able to meet 65% of the coal requirements of the power sector. This is the real crux of the problem."
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