CIL board agrees to penalty on shortfall & price pooling

The Coal India board met today in Delhi to discuss issues related to the fuel supply agreements. The board has agreed on the penalty to be levied if there's a shortfall and in principle has agreed to pooling of prices as well, reports CNBC-TV18's Anshu Sharma.

Coal India Board met today to discuss penalty and pooling of prices of imported coal. So, the board has arrived on a penalty which will be levied between1.5% to 40% in graded manner, 1.5% will be for shortfall below 80% till 65%. If it falls below 65% then it will be between 5-40% in graded manner.
The board has given a green signal but Coal India Board has broadly agreed to pooling of price. However, S Narsing Rao, CMD of the company has said all stakeholders like power producers, state electricity board should be on board if pooling of prices has to be implemented.
"Basically so far we have communication that there is broad consensus amongst the consumers but then that means anything. Some are not willing what will be the situation. We have no objection to implement price pooling if it is acceptable to all stake holders," he said.
So, that may be discussed in the next board meeting on August 13.