Government-owned power producer NTPC has apparently decided to put an end to its long standoff with Coal India Ltd. (CIL) by agreeing to sign the new Fuel Supply Agreement (FSA).

At the request of the union power ministry, CIL has modified a number of clauses, including penalty clauses, in the new FSA.

NTPC agreed to sign the FSA for new units with an 80 per cent trigger point, while FSAs for units prior to January 2010 were penned down with a 90 per cent trigger point.

Arup Roy Choudhury, chairman of NTPC, said, "An understanding with CIL has been reached and we have now agreed to sign the FSA for new units at existing plants with an 80% trigger point."

Speaking on the topic, Choudhury said old and the new FSAs were largely the same now and that the government-run power producer didn't have any reservations against signing it the new FSA.

After signing the new FSA, NTPC will use nearly 50 per cent of CIL's total produce. Previously, NTPC had declined to sign the draft FSA, arguing that it was inclined in favour of the coal monopoly.

However, the modified fuel supply agreement is still being scrutinized by the power ministry.