BS reported state run NTPC would abide by the Prime Minister Office directive of signing the fuel supply agreement with Coal India at a minimum assured supply of 65%.

Mr Arup Roy Choudhury CMD NTPC said without divulging whether the trigger level would be 65% that "We want coal, we would do what the PMO says."

The Prime Minister Office (PMO) in a meeting held last week is believed to have accepted the demand of Coal India to lower the minimum supply level or trigger level to 65% from 80% proposed by the PMO earlier.

It asked the coal major to increase the minimum supply level to 72% in four years and reach the 80% mark in five years. PMO also asked Coal India to go for coal imports through the state-owned agencies including STC and MMTC.

Earlier a Presidential directive was issued in April, after the PMO's intervention, asking Coal India Ltd to commit a minimum of 80% of fuel supply to power projects. Besides, there would be no moratorium on payment of penalty.

Source - Business Standard

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