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According to Bloomberg, the company missed a deadline for some of the agreements after its board baulked at a penalty clause that would require it to pay a fine for failing to deliver at least 80% of contracted quantities.
Indian Prime Minister Manmohan Singh reportedly asked Coal India to ensure fuel supplies in February after meeting industrialists who had delayed plans to spend $36 billion on building power plants.
It is believed that the coal giant hasn’t signed agreements with utilities since 2009 due to a reduced supply of fuel sources.
The company will import the fuel to overcome local production hurdles and reduce frequent power blackouts in the country.
