(EnergyAsia, October 29 2013, Tuesday) — State-owned Coal India Ltd (CIL), one of the world’s largest producers of the fuel, said it has signed supply agreements with companies operating 90% of the country’s 173 coal-fired power plants with a combined 78,000MW capacity.


While its officials claim they will soon close on the remaining 10%, India’s largest power company, NTPC, which owns and operates 18.4% of the nation’s total 227,356MW of power-generating capacity, has refused to fully rely on CIL and is looking for alternatives.

According to terms of the new agreements, CIL will supply at least 65% of the contracted volume from domestic sources at subsidised local prices, and 15% through imports at full international prices.

CIL was to have concluded its supply agreements with the power companies last year, but protracted disagreements over pricing and delivery terms mean that negotiations are likely to continue into 2014. NTPC has openly accused CIL of failing to meet the terms and conditions of previous agreements, causing many of its power plants to operate below capacity.