Kolkata: Power companies that participated in an auction for long-term fuel supply contracts may sue Coal IndiaNSE 0.42 % for holding another round of auction and not allowing them to bid.
Coal India executives, however, said the second auction would help the stressed power plants that could not participate last time for reasons beyond their control.
Participating power companies said that the 2017 auction, Shakti B(ii), was a one-time process and was for power plants that had managed to sign power purchase agreements (PPA) but did not have steady fuel supply contract from Coal India. Bidding was on the basis of discounts on existing power tariffs offered by power producers.
