Resume coal supply to NTPC, government tells Coal India - NDTV

New Delhi: The Coal Ministry has directed state-owned Coal India to continue supplying at least 50 per cent of the fuel requirements to NTPC for the time being, even as CIL has stopped supplies to the power major. "The supply (of coal by CIL to NTPC) has been discontinued. CIL had taken a decision. But instructions have been sent by our ministry (to CIL) that at least 50 per cent of supply should continue for the time being," Coal Minister Sriprakash Jaiswal said on Friday on the sidelines of a conference organised by the Policy Development Initiative. This development follows media reports that CIL had switched off fuel supply to the power major after NTPC held back payments. "In the meantime, after having talks with NTPC, the dues will be recovered," Mr Jaiswal added. NTPC and CIL have locked horns over theh quality of coal being supplied. "We are ready for a third-party inspection (of coal) at the load ing point, but not at the reaching point (of coal)," the coal minister said today. NTPC, the country's largest power producer, has refused to sign fuel supply agreements (FSAs) with CIL as it deems the supply to be of inferior quality. NTPC buys close to 140 million tonnes of coal for its thermal power plants. Unlike most of CIL's other customers, it has not signed an FSA for its 4,500 MW power generation capacity. NTPC said the company has resolved all the issues with CIL and the only matter coming in the way of signing the FSAs is "poor quality" coal. Power Secretary P Uma Shankar has said his ministry and the Coal Ministry should be able to solve the problem amicably. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG5n06TfL9N3tVpc-NASkw1ZiUl1g&url=http://profit.ndtv.com/news/industries/article-resume-coal-supply-to-ntpc-government-tells-coal-india-320515

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