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State-run miner Coal India announced that it will now permit coal supplies to thermal power plants, including independent power producers (IPPs), beyond the previously set annual contracted quantity (ACQ). This new policy eliminates the former cap, which allowed coal deliveries up to 120 percent of the ACQ.
The change is expected to benefit power plants that need to increase their coal intake beyond the allotted amount. For Coal India, the move aims to boost coal sales at a time when overall coal demand is easing.
The board of Coal India has approved this shift, which also applies to power generation companies (Gencos) with fuel supply agreements (FSAs). The company anticipates that this simplification will enhance business operations, reduce administrative complexities, and increase coal sales.
Currently, Coal Indias stockpiles stand at 72 million tonnes, a 47 percent increase from 49 million tonnes as of August 12, 2023. In the fiscal year 2024, coal supplies to coal-fired plants reached a record 619.7 million tonnes, fulfilling 101.6 percent of the projected demand. This marks a 5.4 percent increase from the 586.6 million tonnes supplied in the previous fiscal year.
Coal India maintains long-term linkages with 127 of the 153 domestic coal-based power plants in the country, accounting for 592 million tonnes. Additionally, the company has linkages with 50 of the 54 domestic coal-based IPPs, totaling 155.7 million tonnes per annum. In the last financial year, domestic coal-based power plants generated 1,177 billion units of power, with approximately 78 percent sourced from Coal India’s supplies. |
