Coal India may not sign new supply agreements with customers terminating existing ones
Coal India may not sign new fuel supply agreements with customers, for a period, who renege on contracts on frivolous grounds, the state-run firm said days after major customers walked out of deals to buy fuel, citing poor quality and high transport costs.
It said efforts to supply coal of better quality and larger quantity than what is committed have increased revenue. The company had made a provision of Rs 1,365 crore for variation in coal quality in previous years, but it withdrew the provision in the last fiscal.
