Non Power Sector Consumers Financial Coverage Charge exempted by CIL

State-owned Coal India Limited announced on Sunday that non-power sector (NPS) consumers will not be required to pay monetary value for coal for ten days of supply as financial coverage for dry fuel that is received via rail transport.

The PSU in its statement said, "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."

This decision is consistent with Coal India's ongoing attempts to streamline operations under the wider initiative of improving the ease of doing business. This will improve the liquidity position of consumers, which can be used to fund other operating expenses and less burden in working capital.

CIL noted, "This also helps to reduce the financial burden for NPS consumers and improve their cash liquidity, 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."

In the ongoing financial year, CIL has supplied around 560 million tons (MT) to the power sector till February. Whereas, NPS consumers received approximately 134 MT of coal. CIL did around 55% of all its coal supplies using rail transport. Coal India has more than 80% of domestic coal production in India and continues to play a crucial role in the energy sector of the country.