Help Desk -
9958816305, 9810335381
Email
Password

CIL Eases Coal Supplies Rules for Non Regulated Customers and IPPs

Coal News - Published on Mon, 09 Dec 2019

Image Source: CIL Coal Supply
State run Coal India Limited revealed that it has relaxed norms for supplying the fuel to its customers of non-regulated sector by extending letter of credit to them and allowing an independent power producer to transfer coal from one plant to another. With the credit facility, non-regulated customers from steel, sponge iron, cement, aluminium, MSMEs and IIPs need not to make 100 per cent advance payment for coal and this will enable them to run their plants smoothly. CIL said "CIL is extending the letter of credit facility to non-regulated customers, allowing them to pay coal value through Irrevocable Revolving Letter of Credit mode for supplies through rail mode under fuel supply agreements executed through linkage auctions. Earlier this facility hitherto was extended only to power generating companies.”

Customers of non-regulated sector are large in numbers and blockage of working capital in coal movement through railways was found to have a bearing on their financial health. Earlier, significant amounts of money deposited by these customers against the coal value for transporting through railways were locked up in the form of advance. During 2018-19, around 73 million tonne of coal was supplied to the non-regulated sector under fuel supply agreement, out of a total coal off-take of 608 million tonne.

In a separate initiative, IPPs have been allowed State run Coal India Limited revealed that it has relaxed norms for supplying the fuel to its customers of non-regulated sector by extending letter of credit to them and allowing an independent power producer to transfer coal from one plant to another. With the credit facility, non-regulated customers from steel, sponge iron, cement, aluminium, MSMEs and IIPs need not to make 100 per cent advance payment for coal and this will enable them to run their plants smoothly. CIL said "CIL is extending the letter of credit facility to non-regulated customers, allowing them to pay coal value through Irrevocable Revolving Letter of Credit mode for supplies through rai

Source :

Posted By : Yogender Pancholi on Mon, 09 Dec 2019
Related News from Coal segment