UK fund sues government for interference in Coal India
01 Aug 2012
The Children's International Fund (TCI), a UK-based hedge fund, has finally taken Coal India Ltd (CIL) to court after holding out threats for several months.
The fund today said it has filed a writ petition in the Delhi High Court seeking quashing of the coal ministry's order on lowering prices of FSA coal. FSA coal is supplied to power producers under the Fuel Supply Agreements (FSAs).
In a letter dated 25 January 2012, the then coal secretary Alok Perti had asked CIL to revise the price hike the company announced in December 2011.
In a statement, TCI partner Oscar Veldhuijzen said the ''Delhi High Court was pleased to issue notice to both CIL and the Union of India'' on quashing the order by Perti.
In December 2011, CIL had hiked thermal coal prices. However, the ministry, which controls Coal India administratively, directed that the prices be reduced and in step with the direction CIL reversed the price hike on 31 January 2012, which the TCI is protesting.
The coal ministry has taken a hard stance on allegations by TCI all along dismissing them as undue interference in coal pricing.