Coal India Ltd (CIL) has said that it will be able to assure only 60 per cent of supply of coal to its customers and will gradually increase the figure to 80 per cent in the coming years.

CIL said that the assurance of 80 per cent supply is not possible now and it can only guarantee 60 per cent supply. The state-run firm said that it would look to gradually increase the assured supply level to 80 per cent. The arrangement is for thermal power plants commissioned after March, 2009.

The country’s union power ministry has said that there should be assurance for a minimum supply level of 65 per cent for the power firms if CIL not able to meet the mandated commitment of 80 per cent.

Prime Minister's Office had asked CIL in March to sign Fuel Supply Agreements (FSAs) with power generation firms with a minimum commitment of 80 per cent. The officials in the ministry now say that if CIL not able to assure even 65 per cent of it should be penalized. They also demand that CIL should increase their assured supply level to 80 per cent in the next four years.

A total of 14 power utilities have signed the FSAs with Coal India while some have expressed concerns over some terms of the agreement.