Effective October 1, Coal India Ltd (CIL) will implement uniform interest rates on receivables past due, aiming for ease of business. Previously, interest rates varied even for the same buyer under different fuel supply agreements. The change addresses consumers' concerns about inconsistent interest rates.
New Delhi: Effective October 1, Coal India Ltd ( CIL ) will apply uniform interest rates on receivables outstanding after the due date.
The move is aimed at enabling simplification and ease of business, the state-owned company said in a statement.
So far, interest rates on late payment had wide variances even for the same buyer of coal that had different and more than one fuel supply agreements (FSAs) with the company, it said.
Coal India took cognisance of representations made by coal consumers who sought revision in the lopsided interest rates, the company said, adding that it levelled the differences and brought in a uniform rate.
The policy tweak is for coal sold under different fuel supply agreements and schemes.