Mumbai: Coal India Ltd (CIL) has introduced a series of measures aimed at increasing coal supply to non-regulated sector (NRS) consumers while providing greater operational flexibility to industries. The initiatives are expected to improve coal availability and reduce dependence on imports.
Record 35 Million Tonnes Offered
In a major move, CIL has put on offer a record 35 million tonnes (MT) of high Gross Calorific Value (GCV) coal under its linkage auction window scheduled for June 12, 2026.
The offer is mainly targeted at the sponge iron sector, which traditionally depends on imported high-grade coal. The company expects the increased domestic supply to help reduce imports and support local industries.
Relief for Steel Industry
Responding to demands from the steel (coking) sub-sector, CIL has allowed companies to sell surplus coal middlings in the open market.
Coal middlings are power-grade coal generated as a by-product during the washing of coking coal. While some steel plants use them in captive power units, the new policy allows the sale of excess quantities, improving flexibility and revenue opportunities.
Easier Rules for New Projects
CIL has also relaxed linkage norms for companies planning greenfield and brownfield projects.
Businesses can now secure coal linkages before project commissioning and begin sourcing coal within three years of obtaining the linkage. This is expected to help companies secure financing more easily as fuel availability remains a key requirement for lenders.
Power Sector Supply Remains Strong
The company said it continues to meet the needs of the power sector. Between January and May of the current fiscal year, CIL offered 57.8 MT of coal under short-term Window-II and 69.2 MT under long- and medium-term Window-I auctions.
To further support power producers, CIL will conduct another SHAKTI coal auction on June 8, where around 34 MT of coal will be offered. The company said temporary declines in power plant coal stocks during peak summer demand are being offset through continuous replenishment from ongoing production.
