Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessCompanies

If unhappy, TCI can sell-off its stake in CIL: Coal secy

If TCI is unhappy, it can sell off its stake in Coal India. That's the response from coal secretary Alok Perti.

March 26, 2012 / 09:54 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Moneycontrol Bureau


If TCI is unhappy, it can sell off its stake in Coal India. That's the response from coal secretary Alok Perti. 


The Children's Investment Fund, the largest FII investing into Coal India, had recently wrote to the management regarding issues on corporate governance and CIL failing to protect the interests of minority shareholders. The UK fund had threatened to take legal action if a detailed response was not given.


In the letter, TCI alleged that Coal India reversed a decision to raise coal prices on instructions from the government. TCI had obtained a letter written by the coal secretary to NC Jha, the then chairman of CIL, through the Right to Information (RTI) Act.


However, Perti denied receiving any such communication. In fact, he goes on to say that the TCI is influencing the independent board directors' decisions on signing of FSAs or fuel supply agreement with private power companies.


The government had asked Coal India to sign FSAs at trigger level of 80% and the Coal India board is scheduled to meet again on March 28 to take a call on the issue. Secretary coal also clarified that about 6% increase in coal production for FY13 and stock of 60-70 million tonne of coal will help meet the targeted FSAs with the power companies.

Also read: Level of CIL's corporate governance shameful: UK fund TCI

first published: Mar 26, 2012 04:04 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347