The aim is to encourage power plants to opt for increased domestic supply of coal and steer them away from imports to the extent possible, the official said.
Coal India Limited has increased the minimum assured commitment level of coal supply the trigger level – to its power sector consumers from the existing 75 per cent to 80 per cent to encourage power plants for using domestic dry fuel more, an official said on Monday.
The move will help the miner push 14 million tonne more coal to power. The aim is to encourage power plants to opt for increased domestic supply of coal and steer them away from imports to the extent possible, the official said. Besides, the slowdown in demand because of the ongoing nationwide lockdown has helped the company to raise the trigger level.
The company board has approved the proposal. Coal companies of CIL have been advised for immediate implementation of the increase. The trigger level for the power sector consumers covered under Fuel Supply Agreements (FSA) was 75 per cent of the annual contracted quantity (ACQ).
The amendment to elevate the trigger level to 80 per cent in the provisions of existing FSA shall be through a side agreement, the company said. FSAs that totals 290 million tonne will be able to take benefit of the revised trigger level. CIL’s FSAs with power utilities stand around 560 million tonnes.