What is FS Agreement?

Our Business

Products & Services

Supply of committed grade/quality and quantity of coal uniformly and consistently to the customers over the agreed period at competitive prices.

Coal industry has no exception to the new challenges posed in the Globalization and Privatization scenario . In order to meet those challenges and to maintain the competitiveness it is essential to be sensitive in the area like product price, quality, service, customer satisfaction etc. Getting a new customer for our product is required and it is cumbersome and uncertainties are involved. Maintaining the existing loyal customers with us is essential.

To achieve the above objective Ministry of Coal, Government of India is encouraging the coal producing companies and major core customers to enter FUEL SUPPLY AGREEMENTS. The various agreed clauses of the agreements spell the commitment from both the sides with bonuses and penalties.

Advatages of FSAs

Benifits to SCCL	Benifits to Customer
1. Assured market for the coal due to loyal customers.	1.Assured supply of Contracted quantity of coal uniformly as per agreed despatch schedules enforced by bonuses and penalties.
2. Better Planning and Monitoring of Quality, Production and Despatches due to the prior knowledge of quality and quantity of coal to be supplied.	2. Supply of committed grade of coal enforced by bonuses and penalties.
3. Scope for maximizing sales revenue by earning bonuses due to better performance	3. Customer can avoid the repetitive processes, delays and costs involved in procurement of coal.