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Jun 09, 2012, 11.56 AM IST | Source: CNBC-TV18

CIL can only meet 65% FSA requirement of power firms: CMD

Narsing Rao, chairman and managing director, Coal India, has confirmed that 15 FSAs have been signed with the power companies but even in the best possible scenario, Coal India will not be able to supply above 65% for the new FSA requirement.

Narsing Rao, CMD, Coal India

Coal India , has confirmed that 15 FSAs have been signed with the power companies but even in the best possible scenario, Coal India will not be able to supply above 65% for the new FSA requirement. Negotiations are on between the company and related ministries to resolve the issues, reports CNBC-TV18.

Narsing Rao, chairman and managing director, Coal India, said, "our ministry has written to the coal ministry requesting them to advice Coal India to restore the old FSAs with a modified trigger level from 90% to 80%. We have our own constraints. This year, at a best possible production and off take target, we possibly can only meet up to 65% of the FSA or Annual Contracted Quantity Requirement (ACQ). We have a target growth rate of 6.8% for this year. Despite that, we would only be able to meet 65% of the coal requirements of the power sector. This is the real crux of the problem."

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Coal India stock price

On October 23, 2014, Coal India closed at Rs 352.75, down Rs 0.25, or 0.07 percent. The 52-week high of the share was Rs 423.85 and the 52-week low was Rs 240.50.


The company's trailing 12-month (TTM) EPS was at Rs 20.04 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.6. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 13.55.

READ MORE ON  Coal India, Narsing Rao, FSA, supply, ACQ
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