CIL asked to sign supply pact with NTPC for 750 MW Assam project

Coal India has been asked to sign fuel supply agreement with NTPC for 750 MW power plant in Assam, Minister of

State for Coal Pratik Prakashbapu Patil has said.

"NTPC is setting up 3x 250 MW power project at Bongaigaon, Assam... for which Ministry of Coal has already

issued instructions to Coal India Ltd to sign fuel supply agreement for supply of coal," Patil said in a

written reply to the Rajya Sabha.

The minister also said that one unit of the power project of NTPC of a capacity of 250 MW was likely to be

commissioned next fiscal, which the other two units in 2014-15 and 2015-16.

According to NTPC, its Rs 5,000 crore project is located in Salakati district of Assam. The coal linkage to the

project will be provided by both Eastern Coalfields, a CIL subsidiary, and North Eastern Coalfields Ltd.

The government has recently asked Coal India to sign long-term fuel supply agreements with power producers.

However, some power producers, including NTPC, had refused to sign agreements with Coal India as they have

reservations about clauses, including those related to penalty, in the revised fuel supply agreement.

Also, CIL yesterday said it would not restrict the supply of fuel to NTPC in the current financial year even if

the FSAs are not signed.

"NTPC will continue to get coal whether FSA is signed or not as government has asked us to extend the same for

the current year even though MoUs expired in March," CIL Chairman and Managing Director S Narsing Rao had said.

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