An independent director on the board of Coal India Ltd. (CIL) has asked the state-run company not to sign fuel supply agreements (FSAs) with power producers till clarity emerges on the entire coal scam. The director has also sought complete information on the power projects and their owners to ascertain whether any of the individuals/companies have any link with Coalgate that has rocked the nation.
‘Do not rush’
In a letter to CIL, independent director S. K. Barua has written that the company should not rush with the approval of signing FSAs during the board meeting on September 8 and, instead, provide the list of owners of the power plants who want to sign the FSAs.
CIL has also been asked to submit a list of coal blocks allotted to the private firms, their date of allotment and by what date these firms were suppose to start work on production.
“CIL should furnish a list of power projects and the owners of these projects who would be the customers for coal under FSA,” the letter said.
“It would be myopic for the board to believe that ‘Coalgate’ has nothing to do with the signing of FSAs. These FSAs are clearly designed to bestow favour on chosen projects and power producers. If they also happen to be those who received largesse from the government in terms of allotment or coal blocks, then we would also be guilty of favours to the same set of projects and owners. I would, therefore, urge CIL to keep the above information available for the board meeting. If possible, the same may be sent earlier,’’ the letter elaborates further.