Miffed at the Coal India (CIL) board’s recent decision to set a low penalty level under the fuel supply agreements (FSAs) with power plants, private power producers are planning to again approach the Prime Minister’s Office (PMO). What CIL would pay if it fails to supply the entire additional quantity of coal to the power sector is a paltry Rs 77 lakh annually.

After last month’s presidential directive to the world’s largest coal producer, its board on Monday agreed to sign new FSAs with power companies at an 80 per cent commitment level.

Forced by a presidential directive, government-owned Coal India is likely to sign fuel supply agreements (FSAs) with at least 50 power companies after a board meeting next week.

The board, on the urging of six independent members, had earlier turned down a government directive to commit at least 80 per cent supply to power companies. It is likely to meet on April 16 to approve FSAs for a combined 28,000 Mw of projects commissioned before December last year.