The Ministry of Power on 10 October 2012 removed the mandatory PPA condition for ensuring coal linkages.
The ministry said that electricity firms facing coal crunch can sign fuel supply deals with state-owned miner CIL even if there are no PPAs with distribution companies. However, actual coal supply would not begin until PPAs are not signed by a power company. A presidential directive to CIL earlier this year had put PPAs as a condition for supply assurance to companies by CIL.
According to the ministry, Power companies have PPAs in place for 28,000 MW. These plants are yet to sign FSAs with CIL. Projects with around 2,000 MW of capacity are yet to sign PPAs with distribution companies. Overall, FSAs are to be signed with power projects of 60,000 MW capacity.