By IANS,
Kolkata : State-run Coal India Ltd (CIL), which recently prepared a fuel supply agreement (FSA) model to be signed with power utilities, has invited bids for appointing a consultant for making an agreement to supply imported coal to the power producers.
The board of CIL, world’s largest coal miner, has allowed the public sector company to offer 15 percent imported coal supplies as part of the fuel supply agreement (FSA) on a “cost-plus” basis. The cost-plus model provides imported coal at its actual cost.
As per the presidential directive, the coal major has to meet 80 percent trigger level. The company said the 80 percent trigger level would be maintained with 65 percent of domestic coal and 15 percent of imported coal.
Coal India said it would appoint an agency both for import of coal and delivery of the same to the power firms, unless agreed otherwise at the end of the power house.
“CIL, having finalised the FSA model and the side agreement, now looks forward for an advisory services to develop a legally-commercially enforceable agreement between all parties concerned,” according to a notice of company inviting tender.