CIL board clears revised FSA
The Coal India (CIL) board on Tuesday cleared the final draft of the revised fuel supply agreement (FSA). However, a decision on price pooling would be taken after consultations with various stakeholders.
“We have cleared the revised FSA approved on April 16. Power producers can start signing it from tomorrow,” said Chairman and Managing Director S Narsing Rao. Fresh clauses would now be included in the FSAs already signed with 29 firms.
On price pooling, the company would consult the Central Electricity Authority, as well as power producers.
At the last board meeting, it was agreed the penalty slabs on failure to meet supply commitments would be revised, and the moratorium would be done away with. The board has now approved the cost price model for signing FSAs. This would provide imported coal at actual costs.
After protests over its decision to opt for a mere 0.01 per cent penalty, CIL had agreed to 1.5-40 per cent penalties.
Willingness on deallocated blocks
CIL has expressed its willingness to accept and come up with an action plan on the deallocated coal blocks.
“We are anticipating to get these blocks. If CIL gets these, we will come up with an action plan first on how to go about it. CIL is well prepared to produce from these,” S Narsing Rao, chairman and managing director, told Business Standard.