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Informist, Thursday, Aug. 7, 2025

--Coal India OKs power units under fuel supply pact to sell power in open mkt

KOLKATA - Coal India Ltd. Thursday said it has revised its policy and now allowed power plants in the country using the company's coal to sell surplus power in the open market or on power exchanges. Under the previous policy, power companies could not sell surplus power generated from Coal India's coal bought under long and medium-term fuel supply agreements in the open market.

Earlier, its usage and sales were restricted by the Maharatna company under specific terms which were signed by the power plants and Coal India during the fuel supply agreement. These provisions in the agreement disallowed the sale of surplus thermal electricity in open markets.

In a statement, the world's largest coal producer said that the erstwhile provision of sales restriction is being removed in the spirit of the Scheme for Harnessing and Allocating Koyla Transparently in India policy of the government and power plants are now free to sell surplus power beyond their power agreement commitments to whoever they wish. The revision in the policy applies evenly to all existing as well as upcoming fuel supply agreements and extends to all the power generators owned by Centre, state governments, and private entities.

"We have been cementing our relations with consumers consistently and the policy facilitates the power sector to meet consistent demand of affordable power" a senior Coal India official said in the statement.

According to Coal India, with the surplus power availability at the exchanges, ideally, the spot power prices will be in check, leading to affordable power to all. In August last year, Coal India did away with its policy to limit supplies to power plants by allowing supplies beyond the annual contracted quantity.

In the ongoing financial year, Coal India has around 650 million tonnes of fuel supply agreements in place for the power sector. 

At 1526 IST, shares of Coal India traded at INR 379.50 on the National Stock Exchange, up 0.7% from the previous close.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Avishek Rakshit

Edited by Vandana Hingorani

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