NEW DELHI: S Narsing Rao, CMD designate of Coal India Ltd (CIL) will attend as special invitee the company’s board meeting which has been called on April 16 to consider the model agreement with power producers for assured fuel supply as per the government directive.
“Rao has been asked to attend the board meeting as a special invitee as there is an important agenda, mainly the fuel supply agreement (FSA),” an official said.
Following meetings of the power sector leaders in the Prime Minister’s Office early this year, the government issued a Presidential directive to CIL to commit a minimum of 80 per cent coal supply to the power producers, failing which the company would be subject to paying a penalty.
As the government has a majority stake in CIL, it has powers to direct the company on a particular course of action.
The quantum of penalty has been left to CIL and the issue would come up for discussion at the forthcoming board meeting in Kolkata, the company’s headquarters, sources said.
It remains to be seen what stand seven of the independent directors take, on the 15-member board, take. Earlier, the independent directors had objected to any government diktat to CIL, which is listed and traded on the stock exchange.
Rao, presently Chairman and Managing Director of the Singareni Collieries Company (SCCL), is expected to join Coal India in the next two weeks.
While he received his appointment letter last week, he is yet to be relieved from SCCL, a joint venture between the Centre and the Andhra Pradesh.
“Andhra Pradesh government is making arrangements to relieve me,” Rao said.