A study of impact of the presidential directive to Coal India
India currently has plans to ramp up coal based power generation on a massive scale. Domestic supply has consistently fallen short of demand and the gap has been widening. Coal India Limited, a public sector company, mines about 80% of the coal in the country and is being directed by the government via a presidential directive to commit to supplying this through Fuel Supply Agreements. This analysis estimates the impact of the recent presidential directive ordering Coal India Ltd. (CIL) to sign fuel-supply agreements (FSA) with power utilities, guaranteeing 80% of the Annual Contracted Quantity (ACQ). We have assessed likely impacts of the implementation of this directive on CIL under different scenarios.