Coal India Limited (CIL) has announced a significant policy update to provide greater flexibility in coal supplies to its non-regulated sector (NRS) customers. Effective from the upcoming Tranche VIII linkage auction, CIL will permit coal supplies exceeding the annual contracted quantity (ACQ) for NRS customers participating in long-term linkage auctions. This initiative aims to align coal availability more closely with the specific requirements of NRS consumers.
Previously, NRS customers were limited to obtaining coal linkages up to 85% of their plant’s installed capacity, calculated based on normative requirements. To procure coal beyond this threshold, customers had to seek alternative arrangements outside the auction process. In response to requests from NRS consumers for increased coal supplies, CIL has revised its policy to allow supplies beyond the ACQ limit. This change is designed to better meet the full coal requirements of NRS customers.
Under the new policy, while the eligibility quantity in long-term NRS linkages remains at 85% of plant capacity, customers can now access coal supplies exceeding their ACQ. An in-built provision for performance incentives has been introduced, wherein CIL will receive a premium set at 50% of the bid price for the actual coal supplied above 100% of the ACQ.
Additionally, CIL has implemented measures to enhance operational flexibility for NRS customers. Beginning with the eighth tranche, interplant transfer of coal is permitted, allowing customers to allocate coal from one plant to another within the same sub-sector group. Furthermore, customers can now swap the mode of coal transport between rail and road without incurring extra costs.
