Greenpeace commissioned Equitorials, a financial research firm, to do an independent analysis of the financial impact of signing Fuel Supply Agreements(FSA) on Coal India Limited. This analysis has been done in the context of the Presidential Directive issued at the government’s behest to CIL,ordering it to sign FSAs with all power projects commissioned up to March 2015.
The Equitorials analysis looks at the likely shortfall CIL will face over the next five year period under various production growth scenarios (1%,5% and 7%). For each of these scenarios, and at various percentages of Annual Contracted Quantities (100%/80%/65%), it estimates the import bill, computes the penalties in case of shortfall and also the income foregone if CIL is forced to stop selling coal through e-auction in order for it to fulfil its FSA commitments.
Read the report to find out more.
Study of Impact of the Presidential Directive to Coal India