Apr 04, 2012, 10.01 AM IST | Source: CNBC-TV18

Coal India to sign FSAs with power cos in 24-48 hrs

Power companies have reasons to cheer as the Government of India has directed Coal India to sign the fuel supply pacts with the power producers at the 80% trigger level, reports CNBC-TV18 quoting sources

Reporter's Diary

Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show »

Power companies have reasons to cheer as a presidential directive from the Government of India has ordered Coal India to sign fuel supply pacts with power producers at the 80% trigger level, reports CNBC-TV18 quoting sources.

According to government sources, it is just a matter of signing the directive which will mandate Coal India to start signing and implementing fuel supply agreements (FSAs).

Under clause 37 of the memorandum of association of Coal India, the Government of India has the right to invoke presidential directive' to overrule the board's decision if no consensus is reached on issues related to national interest.

Coal Indias independent directors were against the signing of fuel supply agreements at the trigger level of 80% and the penalty clause involved.

Also Read: At least 10% supply penalty cost likely for Coal India  

Coal Minister Sriprakash Jaiswal has said that Coal India's board can decide on the penalty clause. He also added that he saw no reason for CIL to import coal.

He expects the FSAs to be signed anytime within the next 24-48 hours.

In February, the Prime Minister's Office had directed Coal India to sign the supply agreements with the power companies by the end of March 31.

Coal India stock price

On April 25, 2014, at 11:12 hrs Coal India was quoting at Rs 302.55, up Rs 0.55, or 0.18 percent. The 52-week high of the share was Rs 330.65 and the 52-week low was Rs 238.35.

The company's trailing 12-month (TTM) EPS was at Rs 26.41 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 11.46. The latest book value of the company is Rs 32.48 per share. At current value, the price-to-book value of the company is 9.31.

Set email alert for


Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Rahul Gandhi

580.2 8.47 1.48%


Bought today


Sold today


User holding

video of the day

Add cyclicals, banks on positive poll outcome: UBS

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.