CEA to meet power firms over Coal India penalty clause

Power companies that have not signed the fuel supply pact with Coal India contesting its minimum penalty clause are meeting the Central Electricity Authority tomorrow to find a resolution to the issue. CEA, the power sector planning body, has convened a meeting of power utilities who have not signed the Fuel Supply Agreement (FSA) with CIL opposing the minimum penalty clause. According to a government directive last month, in case state-owned CIL fails to supply 80 percent of the contracted coal with the firms, it will have to pay penalty.As per the FSA, the rate of compensation or minimum penalty for the "Failed Quantity" is 0.01 percent and would be applicable after three years, which the power companies say is an inadequate safeguard. CE.....