New power producers are unlikely to agree to the cost-plus model as their costs will be higher
Coal India Ltd’s (CIL) board approving the modified Fuel Supply Agreements (FSAs) does not mean power plants will start getting assured supplies of coal to generate power, as new producers might not agree to the pricing under the FSA. The board approved payment of penalties in the range of 1.5 per cent to 40 per cent in case of a shortfall below 80 per cent. Thus, only if the company is not able to meet its commitment of supplies will it pay higher penalties.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/news/coal-indias-modified-fsa
[2] http://admin.indiaenvironmentportal.org.in/category/author/shishir-asthana
[3] http://admin.indiaenvironmentportal.org.in/category/newspaper/business-standard-new-delhi
[4] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal-india
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/power-industry
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/imports
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/fuel-pricing
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy
