Power companies may secure coal from alternative sources in the absence of sufficient supply of the fuel from
state-run Coal India.
Earlier this week, the coal ministry had said Coal India had written letters to power companies, seeking their consent for supply of imported coal on cost plus basis under the modified Fuel Supply Agreement (FSA).
Cost-plus basis means cost of
importing coal by Coal India plus additional charges.
In a written reply to the Lok Sabha on Thursday, Power Minister Jyotiraditya Scindia said developers may obtain fuel from alternative sources in case of any shortage of assured
supply of coal from Coal India.
"As per the new coal distribution policy of Ministry of Coal, in order to meet the domestic requirement of coal, Coal India may have to import coal as may be required from time to time," he said.
Thirty power plants have entered into pacts with the coal behemoth. The state-owned firm is likely to enter into pacts with 48 power units.
Power companies waiting to sign the FSA with CIL would have to arrange for 17 per cent of coal on their own, either through import or e-auction, to run their plants at 85 per cent plant load factor.
CIL proposes to use MMTC or State Trading Company to import coal.
With inputs from PTI 
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