CIL plans to hike minimum coal supply level by 15%

Coal India (CIL) is planning to raise the minimum level of coal supply by 15% from the current 60% and also bring alteration in fuel supply agreements (FSA) norms kept in the new coal distribution policy (NCDP), reports Business Standard.

As per the rules, if CIL fails to maintain the 75% trigger level supply to power plants then it will face a penalty. Power plants across the country are demanding that CIL will have to maintain a 90% trigger level. Low coal supply has pushed 56 of the 77 power plants to the critical category and rendered another 33 plants super critical with stocks of less than seven and four days respectively.

There is pressure from power plants to raise the trigger level to 90%. But the company will be in a position to achieve at least 75% after jointly computing the annual contract quantity (ACQ) and trigger level.