CIL in a first makes FSA signing digital and paperless

Coal India Limited (CIL), in a first ever, introduced online signing of Fuel Supply Agreements (FSA) for power as well as non-regulated sector (NRS) customers participating under linkage based auctions. With this move, CIL has done away the earlier practice of physical submission of official papers and bank guarantees and other required documents can be submitted in digital mode.

Formalization of FSAs electronically makes the entire process paper less. For business ease, CIL has also cut down the number of documents that were required to be submitted.

"The online signing of FSAs for linkage auctions effectively saves lot of time for customers and evades the cumbersome process of physical submission of voluminous documents. It ushers in greater customer ease as they can conduct the entire process from their place of work without having to visit the coal companies" said a senior executive of the company.

Once the FSA bidding process is complete NRS customers are provided a 90 day window, without penalty, to submit their documents. Previously, in case of any discrepancy in documents the customers had to visit the coal company from their respective stations to get them rectified. Now the fillip is, this can be done online in reduced time frame avoiding physical visits.

CIL signs hundreds of FSAs annually necessitating maintenance of bulky documents. The present electronic arrangement makes the upkeep much easier. Since the documents are stored digitally, tracking the status of progress also gets simplified at supplier and customer ends. Greater transparency in the system is another big advantage.

For NRS customers where sub-sectors include sponge iron, captive power plants, cement, steel and others the online validation of FSAs has begun from Tranche VII. Syngas producers subsector has been introduced recently to the list. Among NRS so far, a total of nearly 700 FSAs have been formalized online for a total of about 19 million tonnes (MTs) of coal.

In case of power sector 262 FSAs have been signed digitally till now for a total quantity of around 24 MTs.

Shares of Coal India Limited was last trading in BSE at Rs. 498.35 as compared to the previous close of Rs. 493.00. The total number of shares traded during the day was 272231 in over 7649 trades.

The stock hit an intraday high of Rs. 502.20 and intraday low of 493.00. The net turnover during the day was Rs. 135842942.00.

Source : Equity Bulls

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CoalIndia INE522F01014 FSA