Coal India increases trigger level in FSAs with Power utilities

Kolkata: Coal IndiaNSE -3.22 % Limited (CILNSE -0.99 %), has increased the minimum assured commitment level of coal supply, ‘trigger level’, to 80% from the existing 75% of annual contracted quantity (ACQ) to its power sector consumers covered under fuel supply agreements (FSA) for 2020-21.

This is applicable for those FSAs where trigger level was pegged at 75%. The company’s Board has green flagged the proposal in its recently held meeting.

Coal companies of CIL have been advised for immediate implementation of the increase. The amendment to elevate the trigger level to 80% in the provisions of existing FSA shall be through a side agreement. “Raising the trigger level to 80% is targeted towards gencos requiring more coal” said a Coal India executive.