The board of Coal India has approved a proposal that will result in the state run firm once again ensuring at least 80 per cent supply of coal to all of its contractual partners.
The board did not agree on fixing a revised penalty structure and it is likely to meet again soon to device upon the issue. Under the fuel supply agreement (FSA), the company has to supply at least 80% of the fuel contracted to power generating firms that purchase coal from Coal India.
Coal India chairman Narsing Rao said, "We are revising the FSA approved by the board earlier, on April 16. Trigger points remain at 80%. There are changes on the penalty. We have proposed different penalty levels. On this issue of penalty, we have postponed the decision and the board would be meeting again."
CIL might be planning to increase its full-year production target after it managed to achieve first-quarter production target of 102.46 million tonnes (mt). The company had earlier targeted an output of 464 mt, which was described as ambitious by the management give its inability to expand mines. The company had produced only 436 mt of the black fuel in the previous year compared to a target of 452 mt.