Prime’s Minister Office says Coal India Board (CIL) to sign pacts with power firms, assuring a minimum supply of 65% of the total coal committed to them, the PSU's board will meet on July 10 to finalise various issues, including changes in the penalty clause of new model FSAs. According to ET, report says.
"The CIL board is likely to take final view on the issues related to model fuel supply agreements (FSAs), including penalty clause," said a top official in the Coal Ministry.
The board meeting which was earlier scheduled for July 5, has been shifted to July 10 now.
"Due to unavoidable circumstances, the meeting of Board of Directors of Coal India which was scheduled to be held on Thursday, the 5th July...Is hereby postponed to be held on Tuesday, 10th July," Coal India said in a notification dated June 28.
Last month, the Prime Minister's Office (PMO) is learnt to have asked CIL, among other things, to go in for import of coal through state-owned agencies like the STC and MMTC. The coal major is also likely to take up the PMO's directions on import of coal before the board.
Besides, CIL was asked to go back to penalty that existed before 2009, instead of 0.01% as per the new fuel supply agreements (FSAs), and do away with the three-year moratorium on penalty for failing to supply the fuel to the power producers.
"The amendments in the penalty clause may also come up before the board," the official said.
CIL has been directed by PMO to provide assured supply of 65% for the first three years of the FSAs, instead of 80% directed by it earlier in April. But in the fourth year, the assured supply has to increase to 72%, followed by 80% in the fifth year of the agreements.
CIL, which missed the revised production target last fiscal and produced 435 million tonnes of coal, has set a production target of 464 MT for 2012-13.