For the renewal of fuel supply agreement with Coal India (CIL), non-power and captive power consumers will have to compulsorily buy at least 25% higher grade coal from the company. One tonne of higher grade coal will be counted as 1.5 tonne of lower grade and the contracted supply quantity will thus be reduced accordingly.
The move follows the company’s inability to find takers for this higher grade coal, the price of which is higher than its imported variety. The company, in total, supplies 57 million tonnes to the non-power and captive consumers.
Further, CIL has decided that in the event that these companies do not purchase higher grade coal from the company, the same volume shall be deemed to be delivered and a contracted quantity shall be reduced accordingly.
