Govt pulls Coal India into line

STATE-owned Coal India has been ordered to sign fuel supply agreements with the country’s power producers in a bid to ease the growing pressure on the country’s electricity supply.
Govt pulls Coal India into line Govt pulls Coal India into line Govt pulls Coal India into line Govt pulls Coal India into line Govt pulls Coal India into line

Courtesy Coal India

Lauren Barrett

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.

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