Following criticisms from some sections, Coal India (CIL) has liberalised some of the restrictions imposed by it in the fuel supply agreements (FSAs) that it signs with power companies.
For example, the state-run miner allowed supply of coal in excess of annual contracted quantity (ACQ) with mutual consent.
Earlier, the company imposed a restriction in the FSA that after the signing of the agreement, the ACQ could not be changed.
Also, CIL now allows actual coal supply to deviate from contracted quantities depending on the power producers’ requirements.
Earlier, the company imposed a restrictive clause which does not allow any change to the quarterly quantity by any of the parties once they sign the FSA.
CIL computes quarterly quantity (QQ) by dividing ACQ into four unequal parts – of 25 percent, 22 percent, 25 percent and 28 percent, respectively – for the first, second, third and fourth quarters.
Thus, according to the recent amendment, a power plant may get more than 22 percent of its annual requirement in the second quarter if it needs. Likewise, restrictions on monthly supplies, called scheduled quantity (SQ), has also been done away with.