“The government decided to sign the FSAs with 80% commitment. That is why the directive was issued,” Coal Minister Sriprakash Jaiswal said
Cracking a whip, the government issued a Presidential directive to Coal India to sign fuel supply agreements (FSAs) with the power producers assuring them of at least 80% of the committed coal delivery. The directive has been given to the PSU, as it did not meet the deadline of 31 March 2012, set by the Prime Minister's Office for Coal India Ltd (CIL) to enter into agreements with power producers which were facing fuel crunch.
“Government has this power reserved so that whenever there is an emergency then that power can be used. As we saw an emergency, there was a commitment by Coal India. Therefore, the government decided to sign the FSAs with 80% commitment. That is why the directive was issued,” Coal Minister Sriprakash Jaiswal told reporters.
He said it would not take more than two-three days for the CIL to sign the FSAs with the power producers. However, the crucial clause of penalty on CIL in the case of its failure to meet 80% fuel supply commitment, has been left to the PSU board, the minister said.
"It is for Coal India to decide (penalty).They have full freedom (on it)," he said.
The directive comes in the wake of resistance from some of the independent directors of CIL to agree to penalties. It is perhaps only the second time that the government has resorted to this option to force the Maharatna PSU agree to its directive.
The government had issued Presidential directive to state-owned gas utility GAIL India Ltd in 2005 insisting on a particular technology for laying the Rs1,800 crore Dahej-Uran pipeline.
While the power producers welcomed the decision, analysts feel the Rs50,000 crore CIL may stand to lose heavily in case it falters on its commitment to supply fuel to the energy firms.
Nineteen nationalised banks taken together accounted for 52.2% of the total deposits, while SBI and its associates contributed 21.8%, according to RBI data.
Credit by banks grew by 23.5% in the quarter to September 2011, up from 19.3% over the same period a year ago, indicating greater economic activity in the country despite higher interest rate regime.
Meanwhile, aggregate deposits during the July-Sept quarter increased by 22.1% against 13.9% from a year ago, an RBI data showed. State Bank of India, country's largest public sector lender, along with its associates, showed an increase of 18.2% in credit, up from 16.4% over the same period a year ago, it said. SBI Group's total deposits more than doubled to 18.2% in the quarter, from 7.8% a year earlier.
As per the data, top hundred centres accounted for 78.5% of the bank credit. Nineteen nationalised banks taken together accounted for 52.2% of the total deposits, while SBI and its associates contributed 21.8%, it said.
The share of new private sector banks, old private sector banks, foreign banks, and regional rural banks in total deposits remained at 13.7%, 4.8%, 4.6% and 2.9% respectively. The number of banked centres stood at 35,435 as on September 2011, the RBI data said adding 27,913 were single office centres and 68 centres had 100 or more bank offices, the data said.
SC Bhargava, senior VP & head, L&T Electrical and Automation, said, “We are approved as an IPMS and IBS supplier for the Indian Navy together with Servowatch”
The Electrical and Automation Business of Larsen & Toubro completed the share sale agreement formalities for the acquisition of Thalest, the UK-based holding company of Servowatch Systems, Bond Instrumentation and Process Control and Servowatch Inc, (USA).
Thalest is engaged in offering integrated platform management system (IPMS) and integrated bridge system (IBS) solutions for naval warships and mercantile marine ships, vessels and floating systems. L&T’s Electrical and Automation business has been present in this space with marine electrical and automation solutions.
SC Bhargava, senior vice president & head, L&T Electrical and Automation, said, “We are approved as an IPMS and IBS supplier for the Indian Navy together with Servowatch.Thalest/Servowatch joining the L&T family will help offer cutting edge technology in control and automation space not only for marine application but also for other emerging segments. Thalest/Servowatch’s deep understanding of the control and automation space will open new vistas in other markets and segments.”
Servowatch has an extensive experience in dealing with the navies of the US, UK, India, Australia and Thailand. The company also has wide experience in offering control systems for commercial ships, special purpose craft and land / marine asset management.
In the late afternoon, L & T was trading at around Rs1,343 per share on the Bombay Stock Exchange, 1.11% down from the previous close.