Coal truths

The initiation of legal action by a London-based hedge fund against the Centre for allegedly forcing Coal India Ltd (CIL) to enter into fuel supply agreements (FSA) on non-economic grounds, highlights the classic dilemma facing governments in their simultaneous roles as policymakers and promoters of enterprises. The Children's Investment Fund Management (TCI) – which holds slightly over one per cent in CIL – has claimed that the Centre's instruction to the coal major to ink FSAs with all power plants to be commissioned within the next three years goes against minority shareholders' interests.

Read Full Story>>