CIL Eases Coal Supply: NRS Sectors to Benefit

Coal India Ltd. will supply coal beyond the normative requirement to non-regulated sectors. The policy shift allows supplies above the annual contracted quantity in linkage auctions, aiding sectors like steel and cement. CIL also unveils initiatives for easier access, including incentives and inter-plant coal transfers.

State-owned Coal India Ltd (CIL) announced on Thursday its plan to supply coal beyond the normative requirement to non-regulated sectors like steel. This decision, taken on November 13, will be effective from tranche VIII linkage auction, set to commence soon.

Coal India, which produces over 80% of the country's coal, has revised its policy to allow coal supplies above the annual contracted quantity (ACQ) for non-regulated sector (NRS) customers in long-term linkage auctions. Previously, NRS end-user plants could obtain coal linkages only up to their normative requirement.

The move aims to help sectors procure coal according to their actual needs. A major highlight of the policy change includes an incentive for Coal India on supplies above 100% of ACQ, priced at 50% of the bid price. Additionally, purchasers can now transfer coal among their plants or alter transport modes without extra cost.

(With inputs from agencies.)