Coal India waives financial coverage for non-power sector consumers, streamlining operations 

In order to garner more coal offtake, State-run Coal India has provided relief to its non-power sector consumers through financial coverage waiver.

The world’s largest coal miner, in a latest decision, has done away with the financial coverage of ten days of coal value that its non-power sector (NPS) consumers were required to pay for the coal they receive through rail mode.

“With the waiver of financial coverage, CIL takes an important step towards reducing transactional complexities and fostering an environment that encourages smooth and efficient business operations,” Coal India said in a stock exchange filing on Sunday.

“The latest decision is one more step in CIL’s ongoing efforts to streamline operations under the broader ease of doing business initiative. This also helps reducing financial burden for NRS consumers and improve their cash liquidity” said a Coal India executive.

According to CIL, the liquidity availability enables consumers to use the freed-up capital for other operational needs and reduce the working capital pressure.

During the ongoing financial year, the company supplied about 560 million tonnes (mts) of coal to the power sector and nearly 134 mts to NPS consumers till February. The offtake through rail mode accounted for 55 per cent of CIL’s total supplies.

“This initiative is also part of CIL’s broader vision to optimise and modernise coal supply processes for all sectors, aligning with the government’s ongoing push to make business operations more transparent, accessible, and cost-effective for industries across India,” the company said in the stock exchange filing.

Notably, Coal India’s offtake in the April-February this fiscal grew marginally by 1.3 per cent year-on-year to 693.4 mts from 684.7 mts in the same period last fiscal.

Its total production in the April-February period was 695.3 mts , which was 1.5 per cent y-o-y higher compared to 685.1 mts in the year-ago period.

Coal India accounts for over 80 per cent of domestic coal output.