Coal India board meeting postponed

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26 Aug, 2025 12:21

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The meeting of board of directors of Coal India (CIL), scheduled for tomorrow to deliberate on the issues relating to signing of the fuel supply pacts with power firms, has been postponed.
    
"Due to unavoidable circumstances, the...meeting of board of directors of CIL which was scheduled to be held on Tuesday the 10th July, 2012 is hereby postponed," the PSU firm said in a notice.
    
However, no new date and timing for the board meeting has been fixed as of now. "Next date, time..of the meeting will be intimated later," it said.
    
According to sources, CIL board would consider the issues related to the Fuel Supply Agreements (FSAs), including the minimum assured supply of fuel to power firms, whenever it meets next.
    
Certain clauses of the FSAs like penalty became a bone of contention between the Coal and Power Ministries. Eventually, the Prime Minister's Office (PMO) had to intervene to break the deadlock.
    
Last week, the Prime Minister's Principal Secretary Pulok Chatterjee held a meeting to take stock of the situation and address the issue.
   
This was, particularly, relating to the quantum of assured supplies of coal to the power companies.
    
As per the earlier directive of the PMO, CIL was to supply at least 80% of the committed quantity of the fossil fuel requirements of the power firms. Citing reasons such as production constraints, CIL had wanted it to be
reduced.
   
The PMO meeting held last week discussed the possibility of CIL supplying between 65% and 80% of the requirement of power companies, for which FSAs could be signed.
   
Citing introduction of new clauses in the pact, NTPC and many power companies have declined to sign FSAs with CIL.
    
So far, only 27 power plants including that of Lanco, Reliance and Adani, out of 48 in all, have signed FSAs with the state-run coal giant.
    
CIL had also been asked to look into the possibility of supplying 75-80% of the assured quantity of coal in the second year under a relaxed penalty clause, while "in the third, fourth and fifth year, it could be 80% with strict penalty".