The fuel pact, which CIL would sign with power firms with changes, may be placed for approval in the PSUs board meeting likely early next month.
The development comes in the wake of some of the members on the board
of Coal India Ltd ( CIL) seeking some more time to go through the clauses of both the fuel supply agreement ( FSA) and the side agreement minutely.
” In the last board meeting it was decided that two to three members on the board of CIL would minutely go through the FSA and a side agreement which describes large decisions like coal price pooling mechanism,” a source close to the development said.
” Due to shortage of time the board members could not go through the clauses closely, therefore it was decided to place the FSA and side agreement after thorough examination for approval in the next board meeting of CIL likely next month,” sources added.
CIL in its board meeting held earlier this month had agreed to pay penalty between 1.5% and 40% on failing to supply the committed quantity of the fuel to power firms. ( PTI)