New Delhi Coal India (CIL) may barely manage to supply the mandatory 65% of annual coal requirement of power projects this fiscal but could flounder in the next two years and invite a R880-crore penalty, says an internal assessment by the coal ministry.

The analysis, factoring in CIL’s production augmentation plans, comes in the wake of mandatory fuel supply agreements (FSAs) being finalised between the monopoly coal producer and power companies at the behest of the Prime Minister’s Office.