CIL takes steps to offer more coal to NRS

In a series of business-friendly initiatives, Coal India Limited (CIL) is offering more coal to Non-Regulated Sector (NRS) consumers and greater operational flexibility.

In a bid to reduce import dependence of high GCV coal, normally consumed by Sponge Iron sector, CIL has put on offer an all-time high of 35 Million Tonnes (MTs) under linkage auction window to be held on 12th June. Bookings by these units is expected to lower imports in this grade of coal.

Agreeing to the demand of Steel (coking) sub-sector, CIL has allowed them to sell coal middlings in the open market. Middlings are power grade coal that are residual byproduct of washed raw coking coal. Few of the Steel plants use middlings for their captive power plants. For those quantities which are not used, this sub-sector has been permitted its sale. This provision was enabled under the ongoing Tranche-X linkage auctions that began on 3rd June 2026.

CIL has offered 13.75 MTs coal to Steel (coking) sub-sector in current tranche, while also permitting the change of consortium partners over the duration of the linkage period. Earlier, they had the option of changing the partners twice during the contract, which is now increased to five.

NRS consumers planning to establish a Greenfield or a brownfield project are allowed to secure coal linkages even as the projects are yet to be commissioned. They can source coal within three years after the participation in the linkages which enables them to secure bank loans as fuel sourcing is tied up with this. It gives them greater leverage in the market.

Alongside, the requirement of linkages for the power sector under different auction windows are being met. Since January till May during the ongoing fiscal a total of 57.8 MTS of coal was offered under Window-II for short-term, while the long/medium term offer under WindowI was 69.2 MTs.

CIL continues to meet the coal requirements of the power sector. As a natural occurrence, coal stock levels tend to shrink at coal fired plants, fueled by peak summer demand. Therefore, marginal decline in coal stocks at power plants is not a cause for concern, as sustained coal production by CIL is ensuring continuous replenishment of fresh stocks.

To make more coal available in the market, CIL will be conducting the next round of shortterm auctions under SHAKTI policy on 8 June, for power sector consumers, where around 34 MTs of coal would be put on the block.

CIL's efforts are aligned toward greater coal availability to Power Sector and NRS.

Shares of Coal India Limited was last trading in BSE at Rs. 472.30 as compared to the previous close of Rs. 481.75. The total number of shares traded during the day was 559879 in over 12898 trades.

The stock hit an intraday high of Rs. 483.90 and intraday low of 469.30. The net turnover during the day was Rs. 265759232.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 NonRegulatedSector SpongeIron