CIL offers domestic coal to power sector to curtail imports

CIL offers domestic coal to power sector to curtail imports

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Coal India Limited. (Photo: Twitter/@CoalIndiaHQ)
Kolkata, Oct 22 (IANS) Coal India Ltd (CIL), which is taking up "a series of steps" to increase the availability of domestic coal to power sector, has offered five million tonnes of coal to state-run NTPC on a credit basis and agreed to supply 7.94 lakh tonnes of domestic coal per month to power utilities on condition of import cut, an official said on Monday.
The miner, by prioritising coal supplies to the power stations of eastern states, ensured generation to meet the increased power demand during the just concluded Durga Puja festivals, the official said.
"Despite the puja festivities and impact of cyclonic storm 'Titli' on coal production, the supplies have increased to the level of 1.306 million tonnes per day during October, 2018, " a Coal India official said.
However, the coal supplies to the power sector dipped to 1.169 mt per day during September 2018 due to rains.
The miner has offered 5 mt of coal to NTPC to be lifted by road mode.
"As against the normal supply term of 'cash and carry', the release of 5 mt against this offer shall be made on credit basis without insisting for any advance payment and NTPC is to make payment after receipt of invoices. CIL has requested NTPC to immediately contact its subsidiaries to avail the benefit of this offer and to lift the coal within 30 days of release," the miner said in a statement.
Earlier, in the month of September, 2018, CIL had also offered domestic coal to the central and state power utilities and the independent power producers (IIPs), with the condition that they stop import of the proportionate quantities, the miner said.
"Against this offer, at the requests received from the concerned Gencos and AIPPs, ACIL has agreed to supply 7.94 lakh tonnes of domestic coal per month," it said.
South Eastern Coalfields Ltd., the largest subsidiary company of CIL, from where considerable requirement of power sector consumers are being met, has offered to supply coal even beyond the trigger level of 75 per cent of the contracted quantities.
SECL has also offered supply of the balance 25% of the contracted quantities under the FSA to the power generators, which can be lifted by them through Road and Road-cum-Rail modes, it said.
As adverse effects of monsoon season on the mining industry has come to a close, CIL is "taking all measures to ramp up coal production and to further raise the level of supplies from November, 2018 onwards" to meet the requirements of power and non-power sector consumers.
--IANS
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(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

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