The management of Coal India failed to convince its board of directors on the feasibility of a price pooling mechanism to fulfil its proposed supply commitments to power plants commissioned since April 2009.
Opposing the proposal strongly by Independent directors which propose price pooling would largely help the new coastal power plants, mostly in the private sector, get imported coal at a subsidised price.
The board has asked the management to come back with a business model on price pooling. Coal India is facing dilemma over the coal being sold at a hugh discount to power producer (a move proposed by government) which is opposed not only by independent director but Institutional investor such as TCI.
