There will be more flexibility now for State-run power generating companies to swap their coal supplies and divert them to more efficient power plants. Agreements were signed by Coal India last week for aggregation of contracted quantity of coal with state and central power generating companies for flexible movement of coal that would help reduce the cost of power generation, a senior company official said.
The will help combine all coal linkages given to plants of state and central utilities like NTPC. That is, all linkages will be considered as one FSA, for instance if a utility has many plants all over the country and has different fuel supply agreements (FSA) for each plant.
The official said, the option of deciding the effective way of utilising the coal will be given to the utilities, so that at higher capacity to reduce costs efficient plants are run.
“Till April 13, supplementary agreement has been signed for 368 million tonnes of coal of the total contracted capacity of 402 million tonnes with state and central power generation firms,” the official said, adding that the balance agreements are expected to be signed within a few days. Last year in May, the proposal for allowing flexibility in utilisation of domestic coal amongst state-owned power generating stations was approved by the Union Cabinet.