CIL Allows Coal Supply Beyond Limit Amid Easing Demand, Record Stock
The simplification is meant to benefit the power plants which prefer to lift higher quantities of coal beyond their stipulated annual contracted quantity.
(Source: Bence Balla-Schottner/ Unsplash)
Coal India Ltd. announced on Tuesday that thermal power plants, including independent power plants, will receive coal supplies exceeding the annual contracted quantity. This decision follows the approval from CIL’s board to permit supplies beyond the agreed-upon annual limits.
"With this, CIL has removed the earlier provision which allowed coal supplies to a maximum of 120% of ACQ to power plants and IPPs," CIL said in a statement.
The simplification is meant to benefit the power plants which prefer to lift higher quantities of coal beyond their stipulated ACQ.
The development comes at a time when the coal demand is showing signs of slackening. Coal India accounts for over 80% of the domestic coal production. CIL’s pitheads currently have a coal stock of 72 million tonnes, which is 47% more compared to 49 MT as of Aug. 12 last year.
In fiscal 2024, coal supplies to coal-fired plants reached a record 619.7 MT, fulfilling 101.6% of the projected demand. This represents an increase of 31.9 MT, or 5.4%, compared to the 586.6 MT supplied in fiscal 2023.
Out of the 153 domestic coal-based power plants in the country, CIL has long-term linkages with 127 plants, totaling 592 MT. Additionally, CIL has linkages with 50 of the 54 domestic coal-based independent power producers, covering 155.7 MT annually.
In discal 2024, generation from domestic coal-based power plants reached 1,177 billion units. Of this, approximately 78% was fuelled by coal from CIL sources, amounting to 915 billion units.
(With inputs from PTI)
