Severe criticism over alleged one-sided fuel supply agreements (FSAs) finally forced government-run Coal India ltd (CIL) to soften its stance.

Following a series of meetings with power companies, CIL has diluted a number of restrictive clauses in the FSA document.

One of the most restrictive clauses was regarding annual contracted quantity (ACQ) of the fuel. While the previous concerned clause didn't allow the signatory power company to change the quantity, the new document lets companies to get coal supply in excess of ACQ with mutual consent.

The modified document also allows power companies to get more quarterly supply than what they have signed for. Previously, they received their ACQ into four prescribed parts, viz. 25 per cent, 22 per cent, 25 per cent, and 28 per cent, for the first, second, third & fourth quarters, respectively.

Separately, a report suggested that the group of ministers (GoM) on coal will propose the CCEA (cabinet committee on economic affairs) to give a quiet burial to the policy on price pooling.

The proposed policy of price pooling would allegedly make electricity costlier. The GoM on coal instead wants the Cabinet to approve higher coal prices for power companies built after 2009.