Coal India Ltd (CIL) has called for the government to allow a lower or lower railway tariff for domestic coal transport booked by consumers. The move would help facilitate the substitution of imports to some extent, he said.
The move comes as a result of the increasing concern over the fall in coal shipments due to the Covid-19-led demand slump. The company mainly taps domestic coal-fired power plants and non-power-based consumers who import coal. Together, they imported around 150 million tons in 2019-20.
Supply changes
CIL plans to replace its supplies with domestic coal, which would help the coal company to increase its sales. The move would result in a reduction in forex output resulting from coal imports and would help the company expand its supply volumes.
“CIL continues to be beset with tepid demand for coal, with most of the customers shying away from lifting adequate quantities.
