UK based TCI, a minority stakeholder in Coal India(CIL) has written to Prime Minister Manmohan Singh to initiate a CAG audit into the Fuel Supply Agreements(FSAs). TCI cited corruption in the allocation of coal FSAs and demanded the investigation. TCI which earlier called for the removal of CIL Chairman Narsingh Rao had earlier raised the issue and filed petitions in New Delhi and Kolkata court against CIL. Sharing the letter with media, TCI alleged that the miner has taken steps which have a negative impact for its investors.
The latest development comes after reports came out that NTPC as part new FSA with CIL demanded that the coal below gross calorific value(GCV) of less than 3100kilocalorie per kg would not be accepted. CIL, however told them that the demand is not acceptable.
Earlier CIL , said that it may cut the prices of top grades of coal, with calorific value of over 6,100 kilocalories (kcal) per kg, according to reports.
The stock of the state owned miner is currently trading at Rs.294.60 down by Rs.8.10 or 2.6%. The stock touched a high of Rs. 301.50 and a low of Rs.291.20 on Tuesday. Total traded quantity at the counter stood at 3.87 lakh