New Delhi Power companies having long-term power supply contracts with traders, state government agencies and distribution licensees of special economic zones (SEZs) could soon get coal linkages. The government proposes to dilute a key condition in the fuel supply agreement (FSA) enabling these contracts to qualify for coal supply.

As per the existing FSA finalised by Coal India (CIL), power projects get fuel linkages only if they have tied up 60% of their generation capacity under long-term power purchase agreements (PPAs) with distribution companies.