Coal India asks subsidiaries to expediate security deposit refunds

Kolkata: Coal India has asked subsidiaries to expediate security deposit refunds under expired fuel supply agreements (FSA) to ease consumers’ hardship during the current lockdown period. The coal ministry has asked them to submit a timeline within they intend to return these. In a letter to producing subsidiaries, Coal India […]

Kolkata: Coal India has asked subsidiaries to expediate security deposit refunds under expired fuel supply agreements (FSA) to ease consumers’ hardship during the current lockdown period. The coal ministry has asked them to submit a timeline within they intend to return these.

In a letter to producing subsidiaries, Coal India observed that a number of consumers have lodged their grievance about delay in return of security deposit under FSAs years after expiry. The issue was also raised during the interactive session with executives from the non-regulated sector consumers.

“It was assured to the consumers that the subsidiary companies would expedite the process of refund of the security deposit or bank guarantee towards security deposit of the consumers’ against these FSAs.

“The issue was also raised by some consumers before ministry of coal and secretary (coal) expressing his concern over the inordinate delay, had directed that immediate actions should be taken by the coal companies to return the security deposit or bank guarantee against the expired FSAs to the consumers,” the letter mentioned.

As per provisions of FSAs, purchasers are required to maintain security deposit only until three months from the expiry of the agreement and thereafter, it is required to be returned to the purchaser.

Subsidiary companies are required to submit their claims, if any, with the consumers within three months of the expiry of FSAs and they are entitled for retaining deposits only in the event of non-payment of the claims by the purchasers.

It asked them to return such deposits or guarantees to purchasers, in case no claims are pending.

A status report for the month is to be sent by May 3 to the ministry indicating number of pending cases, reason and a timeline within which they plan to return them. It will be reviewed by secretary (coal) in the first week of May.

Source Article

Lois C. Ferrara

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