The coal ministry would push for significant dilution of the provisions of Coal India Ltd (CIL)’s current fuel supply pacts with power companies in tomorrow’s meeting at the Prime Minister’s Office (PMO).

“The ministry will propose lowering CIL’s supply commitment under new fuel supply agreements (FSAs) to 65 per cent of the contracted quantity for the first three years, 72 per cent for the fourth year and 80 per cent for the fifth year,” a senior official from the coal ministry told Business Standard. The proposal to increase the penalty level is aimed at compensating for this reduced commitment.