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Coal India aims to meet 80% coal supply from domestic source

KOLKATA: Coal India LtdBSE -0.70 % is aiming to supply 80 per cent of contracted quantity as against 65 per cent that the mineris required to meet from domestic sources under new Fuel Supply Agreements with power plants. 

"Possibly with the exception of the Simahadri unit, there is no plant of 
NTPCBSE -0.98 % which is receiving less than 80 per cent of the annual contracted quantity. If we make a little more effort, we can even fulfil 80 per cent supply to that unit as well," S Narsing Rao, Coal India Chairman and Managing Director, said. 

On coal import plan by NTPC, Rao said the target is to meet 80 per cent supply from domestic sources. 

According to the new model of 
FSA (Fuel Supply Agreement), CIL was required to meet 65 per cent of the coal for the power plant from domestic sources and the remaining 15 per cent from imports to fulfil the 80 per cent obligation. 

If the buyer agrees to buy imported coal at market-linked price, Coal India will help do so. 

Earlier in February, NTPC had to temporarily shut down a unit of 2,000 MW Simhadri Super Thermal 
Power Station due to shortage of coal. 

"If Coal India is meeting our requirements from domestic sources than nothing like it because that's what keep power prices low," Arup Roychoudhury, CMD of NTPC said. 

NTPC recently floated tender to import 5 million tonnes of imported coal for 18 plants as part of its plan to get 17 million tonnes from overseas during the whole year. 

Meanwhile, Rao said CIL was committed to finalise the third-party sampling by August-end and it would be made effective from October 1.