CIL to Supply Coal Beyond Annual Contracted Quantity to Power Plants

State-owned Coal India Limited (CIL) will now supply coal beyond the annual contracted quantity (ACQ) to thermal power plants and independent power plants. The decision, approved by CIL's board, is expected to benefit plants seeking higher coal quantities amid slackening coal demand. CIL produces over 80% of India's coal.

State-owned Coal India Limited has announced plans to supply coal beyond the annual contracted quantity (ACQ) to thermal power plants, including independent power plants. This decision, ratified by CIL's board, removes the previous cap which limited coal supplies to a maximum of 120% of the ACQ.

This regulatory change is poised to benefit power plants that seek higher quantities of coal beyond their stipulated ACQ, especially at a time when the demand for coal appears to be decelerating.

Coal India, which produces over 80% of the country's coal, currently holds a stock of 72 million tonnes at its pitheads, marking a 47% increase compared to the same period last year.

(With inputs from agencies.)