State-run NTPC did not sign the fuel supply agreement with Coal India (CIL) as the power producer did not agree with the terms, said S Narsing Rao who today took charge as the coal major's CMD.
"The main issue is they are not agreeing to accept the gross calorific value [GCV] formulae and want to go back to old useful heat value [UHV]," Rao said.
"This is not only for new FSA but also for old contracts," he said.
Rao was optimistic that the issue would be resolved soon. "We are having discussions in this regard. However, coal supply will not be affected."
NTPC is supposed to sign the FSA for additional supply of about 25 million tonne for capacity addition between 2009 and 2012.
Asked whether there was any possibility of going back to UHV which the power companies were demanding, the new CIL CMD said it is decided by government.