India: Coal India Ltd (CIL) has threatened to cut coal supplies and break long-term linkages with four of UltraTech Cement's captive power plants in the states of Rajasthan, Madhya Pradesh and Chhattisgarh due to non-completion of the units.
Maharatna CIL has threatened to break long-term linkages and cut coal supplies for 16 captive power plants, including four of UltraTech Cement's captive power plants. When the Indian state-owned CIL signs long-term linkages with a proposed plant, deadlines for the different stages of completion of a plant and the date of commissioning are agreed. All of these plants were incomplete when the Standing Linkage Committee reviewed their implementation status.
"If the captive plants are found to be commissioned with all the milestones achieved, the Fuel Supply Agreement (FSA) may be concluded with them within three months from the date of issuance this notice. Otherwise, linkages may be cancelled," said CIL.