Mumbai: Union Coal Minister Shriprakash
Jaiswal on Friday said that he has instructed Coal India Limited
(CIL) to increase the supply of coal under new fuel supply
agreements to nearly 75 per cent from the current 50 per cent.
"We have instructed the CIL to revise the quantity of
coal to be supplied to power plants under new fuel supply
agreements to 75 per cent from the existing 50 per cent,"
Jaiswal told reporters on the sidelines of an event here
today.
Due to the shortage of coal, the CIL has been signing
FSAs of 50 per cent. As a result, many power projects had
stopped generation due to the coal shortage.
The Ministry has also asked the CIL to reduce the
quantity of coal it auctions and divert it to the existing
power plants.
"We are aware of the issue of shortage of coal for the
existing plants. We have asked the CIL to reduce the quantity
of coal it sells through auction and supply it to the existing
plants," he said.
Currently, the CIL auctions nearly 15 per cent of the
total production.
The Ministry has also reduced the target of coal
production from CIL to 440 million tonnes for FY12, he said.
PTI
