Real-time Stock quotes, portfolio, LIVE TV and more.
Aug 03, 2012, 11.36 AM IST
After months of threatening to do so, The Children Investment (TCI) finally moved the Delhi HC this week against Coal India and the govt. TCI has been crying foul ever since the government had directed Coal India to roll back a price hike in January.
After months of threatening to do so, The Children Investment (TCI) finally moved the Delhi HC this week against Coal India and the govt. TCI has been crying foul ever since the government had directed Coal India to roll back a price hike in January. It got more upset in April when a Presidential directive was issued to sign 80% fuel supply agreement (FSAs) with power firms. CNBC-TV18's Nayantara Rai brings you details from TCI's petition.
Convinced its staring at a USD 1.5 bn opportunity loss, TCI, has lined up a formidable legal team against coal india and the government. Counsels for TCI, Luthra & Luthra were led by senior advocates Harish Salve and Mukul Rohatgi at the Delhi High Court this Wednesday.
In its petition, TCI says the functioning of Coal India is marred by arbitrary and illegal interference by the govt as is evident from the draft CAG report and pending CBI investigation.
TCI has said that these bring to light instances of corruption and favouritism shown to private parties by the govt via its control of coal India. TCI, which had invested around a billion dollar for its 1.01% stake in Coal India, says it has been adversely and prejudicially affected with the govt and Coal India going against their previous oral and written representations.
TCI says Coal Minister Jaiprakash Jaiswal, Coal Secretary Alok Perti had also confirmed the CIL board had complete freedom to set prices. TCI has also challenged the Presidential directive issued to CIL this April, arguing that 80% FSAs with power firms is not in larger public interest.
TCI say Indian households consume close to 195 billion units of power annually and the cumulative electricity bill for the country is USD 18 bn, which can entirely be paid for by CIL’s dividends if coal prices are aligned with the market.
But the crucial argument is the one against FSA's and in favour of auctions - a claim buttressed with the recent spectrum auction ruling and SC order mandating auctions. The Delhi HC has issued notices on TCI's plea and asked for replies from CIL and the govt within weeks.
Action in Coal India
May 23 2013, 16:33
- in Asian markets
May 23 2013, 09:33
- in Technicals