Coal India Ltd (CIL) introduced a series of steps aimed at improving coal availability for non-regulated sector (NRS) consumers and enhaning operational flexibility.
The recent move is likely expected to reduce dependence on coal imports and cater to the needs of the rising need for coal by the industries.
The state-run miner, in a statement, said it will offer a record 35 million tonnes of coal under its linkage auction window scheduled for June 12, targeting high-grade coal consumers such as the sponge iron sector.
The move is also expected to curb imports of high gross calorific value coal.
CIL has also allowed steel producers in the coking coal segment to sell coal middlings -- a byproduct of washed coal -- in the open market if not used for captive power generation.
The provision has been enabled under the ongoing Tranche-X linkage auctions that began on June 3.
The company said it has offered 13.75 million tonnes of coal to the steel (coking) sub-sector in the current tranche, and increased flexibility for consortium changes during contract periods to five times, up from two earlier.
In another change, non-regulated sector consumers setting up greenfield or brownfield projects will now be allowed to secure coal linkages before commissioning, with supply permitted within three years of allocation, a move aimed at easing project financing and improving fuel security.
For the power sector, CIL said it continues to meet demand through multiple auction windows, with 57.8 million tonnes offered under short-term Window-II auctions and 69.2 million tonnes under medium- and long-term Window-I auctions between January and May of the current fiscal year.
The company added that marginal declines in coal stock levels at power plants during peak summer demand are not a cause for concern, citing steady production and replenishment.
CIL will also conduct the next round of short-term auctions under the SHAKTI policy on June 8, offering about 34 million tonnes of coal to power producers.
With inputs from PTI
