Coal India removes quantity limit for power producers
New Delhi: Coal India Ltd has removed the limit on the quantity purchased by power producers and allowed supply beyond their annual contracted volume.
The company has done away with an earlier provision which allowed coal supplies up to a maximum of 120% of the contracted quantity to power plants, it said on Tuesday.
Now, the simplification would benefit the power plants which prefer to lift higher quantities of coal beyond their stipulated contracted quantity, it said.
It said the move focused on increasing its volume sale of the fuel.
The change will apply to the power generators that have signed a fuel supply agreement with an enabling clause. The fillip for the state-owned miner is that the move would boost supplies at a time when coal demand is showing signs of slackening, the company said.
Of the total 153 domestic coal-based power plants, Coal India has long-term linkages with 127 plants of 592 million tonnes per year. For independent power producers, there are 54 domestic units with Coal India having supply linkages with 50 of them for 155.7 million tonnes. -Our Bureau
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