The negligible penalty for supply shortfall set by state-owned Coal India (CIL) as a condition for committing supply to fuel-starved power plants is not the only reason why power companies have rejected the new model supply agreement. This has brought the government’s efforts to resolve the ongoing coal crisis back to square one.

A detailed analysis of the contentious clauses in the new fuel supply agreements (FSAs) reveal what the power companies are calling a “heavy tilt” in favour of the miner.