The union coal ministry has urged Coal India Ltd (CIL) to consider a request by NTPC for singing the fuel supply agreement with revised minimum fuel supply level for all of the new units of its existing plants.

Coal Minister Sriprakash Jaiswal told the Lok Sabha that the CIL has been asked to consider NTPC's request for the agreement with changed terms. "CIL has received a request from NTPC to consider signing of the FSA for the additional units of their existing power stations on the same parameters as done with their existing plants, but with revised trigger point on disincentive as per the government orders," Jaiswal said.

The coal ministry has been requested by the power producers association for incorporating changes in the new model fuel supply agreement. NTPC, which is among the many power generators, is one of the companies that have not agreed to the new terms for signing the agreement and said on Monday that it would only accept revised minimum fuel supply level and not other changes included in the new terms.

Central Electricity Authority (CEA) has approached the PMO for intervention over the opposition of some power units to the clause included in the fuel supply agreements (FSAs). The differences are over penalty that is to be paid by the coal major if it fails to supply 80 per cent of the contracted fuel to them. NTPC is among the companies that have refused to sign FSAs.

The FSA includes clauses that say that power units will see their supply terminated if they divert coal for other uses. It also includes penalty of 0.01 per cent in case the unit does not comply with the agreement terms and conditions.