Coal India's CMD should be replaced, says UK-based TCI
New Delhi: UK-based hedge fund TCI on Wednesday said Coal India (CIL) Chairman and Managing Director S Narsingh Rao should be replaced, stating his inability to take decisions as the company's head for meaningful increases in coal pricing.
"If S N Rao is unable to take decisions as Chairman-cum-Managing Director for meaningful increases in coal pricing to correct this business failure then he is not upto the job. He should be immediately replaced with someone who can run CIL professionally," The Children's Investment Fund Management (TCI) said in a letter to CIL.
The hedge fund company further said in the letter that Rao had recently admitted that the cost base of CIL has risen sharply year-on-year due to significant fuel and wage cost increases as well as general inflation.
The letter dated March 5 also said that despite the cost increases, CIL has not raised prices of Fuel Supply Agreement (FSA) coal to power producers since October 2009.
TCI is a minority share holder of CIL.