Coal India Limited — Updates, 21-11-2024: Press Release

Coal India Limited (CIL) is enhancing coal supply processes for non-regulated sector (NRS) customers by allowing supplies beyond the annual contracted quantity (ACQ) in long-term linkage auctions. This policy change, effective from the upcoming Tranche VIII auction, aims to meet customer demand more effectively.

In previous auctions, NRS customers could only access up to 85% of their plant's normative requirement. However, CIL has taken this step to accommodate requests from consumers who require more than this limit to operate at full capacity. The new policy introduces performance incentives for CIL, offering a premium of 50% of the bid price for coal supplied beyond 100% of the ACQ.

Additionally, CIL is implementing measures for interplant transfer of coal starting from the eighth tranche, allowing customers to move coal between plants within the same sector without incurring additional transport costs. The frequency of linkage auctions has also increased, with CIL now conducting 1.5 auctions annually instead of one every 1.5 years.

This strategic shift reflects CIL’s commitment to fostering customer satisfaction and improving operational efficiency, presenting a positive outlook for stakeholders.