Power industry rejects CIL's FSA

In a meeting with the Central Electricity Authority (CEA), power producers on Wednesday rejected Coal India (CIL)’s fuel supply agreement (FSA). The bone of contention remained CIL’s ‘force majeure’ clause in the model FSA. In the meeting to discuss the FSA model, power companies also told the CEA the FSA had to be designed according to the format that was in place before 2009. According to officials present in the meeting, power producers expressed disappointment over the inclusion of even ordinary business difficulties as ‘force majeure’ events.