Mar 26, 2012, 09.54 PM | Source: CNBC-TV18
If TCI is unhappy, it can sell off its stake in Coal India. That's the response from coal secretary Alok Perti.
If TCI is unhappy, it can sell off its stake in Coal India . That's the response from coal secretary Alok Perti.
The Children's Investment Fund, the largest FII investing into Coal India, had recently wrote to the management regarding issues on corporate governance and CIL failing to protect the interests of minority shareholders. The UK fund had threatened to take legal action if a detailed response was not given.
In the letter, TCI alleged that Coal India reversed a decision to raise coal prices on instructions from the government. TCI had obtained a letter written by the coal secretary to NC Jha, the then chairman of CIL, through the Right to Information (RTI) Act.
However, Perti denied receiving any such communication. In fact, he goes on to say that the TCI is influencing the independent board directors' decisions on signing of FSAs or fuel supply agreement with private power companies.
The government had asked Coal India to sign FSAs at trigger level of 80% and the Coal India board is scheduled to meet again on March 28 to take a call on the issue. Secretary coal also clarified that about 6% increase in coal production for FY13 and stock of 60-70 million tonne of coal will help meet the targeted FSAs with the power companies.