Coal Minister Sriprakash Jaiswal has said that the government is working to make sure that affordable electricity is available to everyone and it will not be deterred by threats of lawsuits by minority shareholders in working towards achieving that goal.
Jaiswal was speaking about a threat of lawsuit by London-based The Children's Investment Fund (TCI). TCI warned that it might file a legal case against the India government alleging that the country's government could have short-changed other investors in Coal India.
Coal India was forced by the government to sign agreements to supply coal to power companies to make sure sufficient supply. A shortage in coal supply is affecting power plants as well as other sectors in the country.
TCI will use some of the provisions within an agreement signed between the UK and the Indian government to file its lawsuits. TCI, which is he second largest investor in Coal India Limited (CIL), had earlier warned of a legal action against the company for allegedly ignoring the interests of minority shareholders.
"Profitability of Coal India as well as meeting power requirement of the country by supplying coal at cheaper rates was government's concern," said the union minister. He added, "Such threats will not affect the government. Our responsibility is also towards the country which needs power at cheaper rates."