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TCI may initiate legal action against Coal India

, April 16, 2012, 0 Comments

Failing to protect the interest of minority shareholders Coal India Ltd may face legal action from UK-based hedge fund TCI. TCI is protesting very strongly against Fuel Supply Agreement (FSA) which commits Coal supply by CIL to private power producer at very cheap rate impacting profitability of Coal India significantly.

Differences between TCI and CIL widens further After a Presidential directive to ink fuel supply pacts with power firms for a minimum assured supply.

TCI is the biggest foreign investor in Coal India and has a minority stake in it. Shares of Coal india were quoting at 337.20 down 0.33% at 2.40 pm on NSE.