Coal India (CIL) has tweaked the performance incentive clause in fuel supply agreements with non-power consumers. Under the performance incentive clause, if the seller (Coal India) issues sale orders for coal to the purchaser in excess of 90 per cent of the assured contracted quantity in a particular year, the purchaser shall pay the seller an incentive. Under the revised clause, performance incentive is applicable only on actual delivered quantity of coal. ´The relevant provision of the performance incentive clause of non-power FSA models has been modified to impart the required clarity,´ Coal India has said in a letter to its subsidiaries.
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