Coal India Limited (CIL) is offering more coal to Non-Regulated Sector (NRS) consumers and greater operational flexibility through new measures. CIL is taking steps to reduce import dependence for high-grade coal.
Under its linkage auction window scheduled for 12 June, CIL has put on offer an all-time high of 35 million tonnes (MTs) of coal, targeting the sponge iron sector which typically consumes high GCV coal. Bookings from these units are expected to lower imports in this grade of coal.
Responding to demand from the steel (coking) sub-sector, CIL has permitted these consumers to sell coal middlings — a power-grade residual byproduct of washed raw coking coal — in the open market. The provision has been enabled under the ongoing Tranche-X linkage auctions that began on 3 June 2026. CIL has offered 13.75 MTs of coal to the steel (coking) sub-sector in the current tranche. CIL has also increased the flexibility for consortium partners, allowing changes up to five times during the linkage period, compared with the earlier limit of two.
NRS consumers planning greenfield or brownfield projects can now secure coal linkages even before their projects are commissioned. They can source coal within three years after participating in the linkages, enabling them to secure bank loans as fuel sourcing is tied up. For the power sector, CIL has offered 57.8 MTs of coal under Window-II (short-term) from January to May of the current fiscal, while the long- and medium-term offer under Window-I stood at 69.2 MTs.
CIL will conduct the next round of short-term auctions under the SHAKTI policy on 8 June for power sector consumers, placing approximately 34 MTs of coal on the block. CIL noted that a marginal decline in coal stocks at power plants during peak summer is not a cause for concern, as sustained production ensures continuous replenishment.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.