Minority report

If the government does issue a directive, as it is threatening to do, forcing the public sector Coal India to sign fuel supply agreements (FSAs) with power plants, it will be most unfortunate. That the FSAs are important is obvious since, if power plants haven’t got fuel supplies tied up, they cannot get bank finance, which is why the power firms petitioned the Prime Minister’s Office (PMO). But, as Coal India’s independent directors pointed out, Coal India doesn’t have the capacity to supply the coal these power producers need.

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