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CIL board will finalise FSA this week-news09042012


Coal India Ltd (CIL) will finalise the Fuel Supply Agreements (FSAs) with power producers after a board meeting this week.


'We are trying to have a board meeting some time this week following which we will finalise the FSAs and the date of the board meeting has not yet been finalised,' a board member said.

The board meet is likely to be headed by the present acting chief Zohra Chatterji as well as the new full-time Chairman and Managing Director S Narsing Rao is yet to take charge and is unlikely to do so within this week, sources said.

The CIL board is trying to expedite the signing of FSAs following a Presidential directive to Coal India to sign them with power producers assuring them of at least 80% of committed coal delivery.

CIL's top management has approved the draft of the FSA and is awaiting legal clearance.

The Presidential directive has been given to the PSU, as it did not meet the deadline of March 31, set by the Prime Minister's Office for CIL to enter into agreements with power producers who are facing a fuel crunch.

Penalty is a major issue for the board for not meeting the March 31 deadline.

Coal minister Sriprakash Jaiswal has said that the crucial clause of penalty on CIL in the case of failure to meet 80% fuel supply commitment has been left to the PSU board.
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