SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Issues between CIL and power companies should be resolved at the earliest: House panel

27 Apr 2012 Evaluate

A parliamentary panel has recommended that issues between Coal India (CIL) and power companies should be resolved at the earliest to prevent an impending energy crisis. The panel has further stated that CIL should enter into fuel supply agreements (FSA) immediately and not delay the process by raising ‘trivial issues’.

The panel, in a report tabled in Parliament, has said that the working group on coal and lignite for the 12th Plan period has projected 615 million tonnes production by Coal India. This means that the coal companies will have sufficient coal stocks to meet requirements of the power plants. Hence they should enter into FSAs and act on the basis of such agreement immediately.

Earlier this month, the government had issued a Presidential Directive to CIL to commit a minimum of 80% coal supply to the power producers, failing which the company would be subject to a penalty. CIL in its board meeting last week approved signing of the agreements with the power producers and put in penalty clause stating that failure to supply at least 80% of the committed quantity to the power firms would attract a penalty of 0.01%. The penalty clause would be operational after three years. However this has not gone down well with power companies.

According to the Planning Commission's estimates, the country's energy supply needs to grow at 6.5% annually if the nation wants to achieve annual economic growth of 9% during the plan period.

 

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×