The coal ministry is poised to issue a ‘government directive’ to state-run Coal India (CIL) to sign 20-year FSAs (fuel supply agreements) with private power producers, guaranteeing to meet at least 80% of the contracted volume.
The government is being forced to take this uncommon step by the six independent directors on the CIL board, including three retired IAS officers. These directors on Thursday refused to clear the model agreement with 80% minimum supply guarantee, top government sources said. At the third board meeting on the issue in as many days, the directors said that they could not clear the agreement as they did not have confidence that CIL would be able to meet the commitment. They said the ministry will have to issue a directive if it still wants the company to sign FSAs with 80% minimum guarantee.
TOUGH STANCE
Independent directors refused to clear the model agreement with 80% minimum supply guarantee as they did not have confidence that CIL would be able to meet the commitment
CIL chairman Zohra Chatterjee took the matter to coal secretary Alok Perti. Perti asked Chatterjee for a detailed report. Subsequently, Perti met coal minister Sriprakash Jaiswal and it was decided a government directive would be issued after CIL submits its report
The government is being forced to take this uncommon step by the six independent directors on the CIL board, including three retired IAS officers. These directors on Thursday refused to clear the model agreement with 80% minimum supply guarantee, top government sources said. At the third board meeting on the issue in as many days, the directors said that they could not clear the agreement as they did not have confidence that CIL would be able to meet the commitment. They said the ministry will have to issue a directive if it still wants the company to sign FSAs with 80% minimum guarantee.
TOUGH STANCE
Independent directors refused to clear the model agreement with 80% minimum supply guarantee as they did not have confidence that CIL would be able to meet the commitment
CIL chairman Zohra Chatterjee took the matter to coal secretary Alok Perti. Perti asked Chatterjee for a detailed report. Subsequently, Perti met coal minister Sriprakash Jaiswal and it was decided a government directive would be issued after CIL submits its report
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