New Delhi, July 3 (PTI): The board of Coal India Ltd will meet next Tuesday to finalise various issues relating to its model fuel supply agreement (FSA) including changes in the penalty clause of new model FSAs, with the Prime Minister’s office nudging it to assure a minimum supply to power utilities.
“The CIL board is likely to take final view on the issues related to model FSAs, including penalty clause,” said a top official in the Coal Ministry.
The board was earlier scheduled to meet this Thursday (July 5).
“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.
In June, the PMO is learnt to have asked CIL, among other things, to go in for import of coal through state-owned agencies like the State Trading Corp and MMTC. The coal major’s board is also likely to take up the PMO's directions on import of coal.
Besides, CIL was asked to go back to the penalty levels that existed before 2009, instead of the 0.01 per cent specified in the new 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.
The PMO has directed CIL to provide assured supply of 65 per cent for the first three years of the FSAs, instead of 80 per cent directed by it earlier in April.
But in the fourth year, the assured supply has to increase to 72 per cent, followed by 80 per cent 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 464m tonnes for 2012-13.