Coal India Ltd (CIL) has offered a record 35 million tonnes (MT) of high-grade coal to sponge iron manufacturers under its linkage auction route, while announcing a series of policy changes aimed at increasing coal availability and operational flexibility for non-regulated sector (NRS) consumers.
The linkage auction, scheduled for June 12, is expected to support domestic sponge iron producers, a key consumer of high-GCV coal, and help reduce imports of the fuel grade.
The move comes as CIL steps up coal supplies to industrial consumers alongside meeting demand from the power sector.
Policy Relief
In another policy change, the company has allowed the steel (coking) sub-sector to sell surplus coal middlings in the open market. Middlings are power-grade coal generated during the washing of raw coking coal and are partly used in captive power plants. The provision has been introduced under the ongoing Tranche-X linkage auctions, which began on June 3.
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CIL has offered 13.75 MT of coal to the steel (coking) segment in the current auction tranche. It has also increased the number of permitted consortium partner changes during the linkage period from two to five.
The company has further allowed greenfield and brownfield projects to secure coal linkages before commissioning. Such projects can begin lifting coal within three years of obtaining the linkage, enabling developers to tie up fuel supplies ahead of project completion.
Sustained Supply Commitments
The measures coincide with continued coal allocation to the power sector. Between January and May of the current fiscal, CIL offered 57.8 MT of coal under Window-II for short-term power requirements and 69.2 MT under Window-I for medium- and long-term supply commitments.
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To augment supplies further, the company will conduct the next round of SHAKTI auctions for power producers on June 8, where around 34 MT of coal will be put on offer.
TOPICSCoalThis article was first uploaded on June five, twenty twenty-six, at two minutes past ten in the night. © The Indian Express (P) Ltd