Coal India Limited, the country’s largest coal miner, said on Monday that its board has reviewed the changes in the model fuel supply agreement (FSA) to be signed with the power firms, but did not take any final decision on it.
“We have reviewed it…it is still under consideration. It was not in a signable form today,” CIL chairman S. Narsing Rao told reporters here to queries whether the board Monday approved the model fuel supply agreement.
The agreement has significant changes in the penalty clause for failing to supply a minimum 80 percent quantity of the total fuel contract.
The coal major in its last board meeting had agreed to pay penalty of 1.5 percent to 40 percent on failing to supply the committed quantity of the fuel to power utilities.
The issue of penalty has been a bone of contention as some power firms had been refusing to ink the fuel supply agreement, opposing the “meagre” penalty clause in the earlier FSA of only 0.01 percent, applicable after three years of shortfall.
Asked when the model FSA with changes in penalty clause would be finalised, Rao said: “Sooner than later.”
Coal India also declared a marginal net profit growth with a stand-alone net profit of Rs.45,765.70 million for the quarter ended June 30, 2012 as compared to Rs.45,415.90 million for the like quarter the previous year.
The company’s total income has increased from Rs.48,508.80 million for the corresponding quarter of the previous fiscal to Rs.49,103.20 million for the quarter ended June 30, 2012.
The company’s consolidated results show net profit after taxes, minority interest and share of profit of associates of Rs.44,692.60 million for the quarter ended June 30, 2012 as compared to Rs.41,439.20 million for the like quarter of the previous year.
Consolidated total income has increased from Rs.160,657.10 million for the corresponding quarter of 2011-12 to Rs. 185,719.60 million for the quarter ended June 30, 2012.
CIL’s coal production has increased from 361 million tonnes in 2006-07 to 436 million tonnes in 2011-12, the final year of the 12th Five Year Plan. Production is envisaged to reach 615 million tonnes in 2016-17.
Minister of State for Coal Pratik Prakashbapu Patil said in parliament Monday that CIL has been supplying more than 90 percent of the targets fixed in the annual supply plan of the coal ministry.
CIL has been in focus for its production and offtake, especially in the wake of the worst blackout the country faced earlier this month.