Coal is supplied to the Power Sector under Fuel Supply Agreement (FSA) as per the mode convenient to the Power Plant. For non-power consumers, a dispensation for change of mode from Rail to Road has been extended by CIL.
In the second tranche of Linkage Auction for Non-regulated sector, 14.8 Million Tonnes of coal linkage was booked. Out of this booked quantity, FSAs of about 14 MT quantity have already been signed which is around 95% of the linkage quantity. For the balance 0.8 MT of coal linkage, the provisional successful bidders have to submit requisite documents with the company to overcome the deficiencies which have been found during the verification process.
E-auction of coal and coal linkage are two different modes for coal supply. Through auction route, long term linkages are given to the consumers and subsequently FSAs are signed. For non-power consumers, FSAs are valid for 5 years and renewable for another term of five years, whereas for power sector, FSAs are valid for 20 years or till the end of plant life or period of Power Purchase Agreement (PPA), whichever is the earliest. E-auctions are generally conducted for shorter duration for the buyers with seasonal/periodic demand or in short term need of coal. Coal companies allocate fresh linkages through linkage auction or sell coal through e-auctions keeping in view various factors like production, existing commitments, logistics availability, evacuation infrastructure, market demand etc. This information was given by the Minister of Railways and Coal Shri Piyush Goyal in a written reply to a question in Lok Sabha today.
