As per the compensation formula approved by the CIL board, the company will pay a penalty of 1.5% for coal supply levels between 80% and 65% to power firms. Supplies between 65% and 60% will attract a penalty of 5%, 60% and 55% would attract 10% penalty; 55-50% will have 20% penalty and below 50% supplies will attract 40% penalty.
The new rates are higher than 0.01% penalty approved by CIL board earlier for entering into FSA with power projects getting commissioned upto December 31, 2011. However, the amount of compensation likely to be paid by CIL would remain on the lower side as expected levels of coal shortfall would only attract the lower band of the penalty.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/news/cil-revises-penalty-clause-fuel-supply-agreement
[2] http://admin.indiaenvironmentportal.org.in/category/newspaper/financial-express-new-delhi
[3] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal-india
[4] http://admin.indiaenvironmentportal.org.in/category/thesaurus/power-industry
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/compensation
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/state-electricity-board-seb
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/national-thermal-power-corporation-ntpc
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy
