PTI reported that the board of the Coal India Limited is likely to meet on July 5 to take a final call on the issue and to firm up changes in penalty clause of new model FSAs.

A top official in the Coal Ministry told reporters “Coal India board may meet on July 5 to take a final view on the issues related to model fuel supply pacts, including penalty clause.”

He said “The amendments in the penalty clause will also come up before the board.”

Last week, the Prime Minister's Office had also asked CIL to go in for import of coal through the state owned agencies like the STC and MMTC. The coal major would take up the PMO's directions on import of coal before the board.

The PMO had also asked CIL to go back to penalty that existed before 2009, instead of 0.01 per cent as per the new fuel supply agreements and do away with the three-year moratorium on penalty if the coal major failed to supply the fuel to the power producers.

Source - PTI

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