Supply gaps: CIL ups penalty | Latest News India - Hindustan Times
close_game
close_game

Supply gaps: CIL ups penalty

Hindustan Times | By, New Delhi
Aug 07, 2012 09:57 PM IST

Coal India Ltd (CIL) has agreed to pay a higher penalty for failure to supply the requisite quantum of coal to the power producers. The new penalty rates, which were decided in CIL’s board meeting held on Tuesday, range from 1.5% to 40% instead of the earlier 0.01%.

Coal India Ltd (CIL) has agreed to pay a higher penalty for failure to supply the requisite quantum of coal to the power producers. The new penalty rates, which were decided in CIL’s board meeting held on Tuesday, range from 1.5% to 40% instead of the earlier 0.01%.

HT Image
HT Image

The penalty is the price percentage of total coal price being paid by the power producers to CIL.

Hindustan Times - your fastest source for breaking news! Read now.

The new penalty rates are based on a grading level wherein coal supplied below 50% of the contracted quantum will attract the heaviest penalty of 40% while if the supply is between 65% and 80%, then the penalty is 1.5%.

“The board also agreed ‘in-principle’ to price-pooling of imported coal,” said S Narsing Rao, chairman of Coal India Ltd, after the board meeting.

Rao added that only if all power producers agree to pay higher price for imported coal then price-pooling of imported coal could be done.

“‘It (price pooling) cannot be done on a case-to-case basis rather for the entire sector,” Rao added.

CIL has agreed to assure at least 80% coal required for a power plant whereby the company will supply 65% coal from domestic mines and the remaining 15% coal would be imported.

The cost of imported coal is higher than coal produced domestically.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On