CIL agrees to sign FSA with NTPC - Angel Broking

Coal India (CIL)'s board has approved the revised fuel pact and agreed to sign FSA with NTPC. The agreement envisages NTPC paying CIL according to the calorific value of coal received at its plants after verification by a third party. The FSA agreement also ensures that Coal India would be eligible for incentives only if it supplies 90% of coal under old FSA agreement (for plants commissioned before March 2009) and 80% of coal under revised FSA agreement (for plants commissioned after March 2009).

We maintain Buy on NTPC.

Source : Equity Bulls

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