Business Standard reported that Coal India Limited has once again postponed its board meeting, earlier scheduled for July 10, to next week.

When asked about the postponement, a senior company official said, “It is in view of the Parliamentary standing committee meetings on Monday and on July 11 that it has been postponed.”

One of the primary items on the agenda for the meeting is signing of fuel supply agreements with power companies. New FSAs are a bone of contention, as a lot of power producers, including NTPC, had expressed dissent over the introduction of new clauses, including a penalty of 0.01% of the value of shortfall, if the firm failed to deliver 80% of the committed coal.

At a meeting with PMO officials last month, CIL CMD Mr S Narsing Rao had proposed the miner commit to supplying coal at 65% of the annual contracted quantity for the first three years, and increase this to 80% in the fifth year of supply. Reportedly, Mr Rao had also proposed doing away with the contentious penalty clause in the FSAs. He had said “These issues would be discussed in the board meeting. The Central Electricity Authority and the power ministry are also seeking feedback from state power utilities regarding the clauses.”

Till date, CIL has signed 27 FSAs.

Source - Business Standard

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