To boost the coal demand hit by the ongoing lockdown, the government on Friday announced a slew of measures like increased dry fuel supply for linkage consumers.
After a meeting with Power Minister R K Singh on providing suo power producers, Coal Minister Pralhad Joshi announced several relief measures for the consumers of Coal India Ltd (CIL), including the power sector, in the wake of the situation arising from coronavirus, according to a coal ministry statement.
“Now, all coal consumers of CIL will be extended the facility of Usance Letter of Credit (LC) which will enable power producers and other coal consumers to avail credit in purchase of coal,” it said. Moreover, the Union coal minister also approved relaxation in the quantity of coal for linkage consumers.
“Now, they can lift quantities even beyond their contracted quantity, if coal is available at the mines,” the statement said.
The minister also announced that no performance incentive shall be levied on the power consumers if CIL supplies more than the upper limit of Fuel Supply Agreement (FSA).
“The mark-up over the notified price for purpose of the base price in auctions to Non-Regulated Sector (NRS) has also been reduced,” it said. Now, the auctions will be held at the notified price.
“These measures are expected to give a boost to coal demand in the present situation. We will review the situation in September 2020 for further continuance,” Joshi said.
