State-owned Coal India allows power companies to swap fuel supplies

New Delhi: State-run power generating companies will now have the flexibility to swap their coal supplies and divert them to more efficient power plants.

Coal India last week signed agreements 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 move will allow all coal linkages given to plants of state and central utilities like NTPC to be combined.

That is, if a utility has many plants all over the country and has different fuel supply agreements (FSA) for each plant, all these linkages will be considered as one FSA.

The utilities will have the option of deciding the effective way of utilising the coal, so that efficient plants are run at higher capacity to reduce costs, the official said.

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