Coal India offers record coal volumes to non-regulated sectors, eases linkage norms

Coal India Ltd. announced a series of measures aimed at increasing coal availability for non-regulated sector (NRS) consumers, reducing import dependence and providing greater operational flexibility to industrial users.

In a statement on Friday, June 5, the state-run miner said it is offering an all-time high of 35 million tonne (MT) of coal under the linkage auction route for the sponge iron sector. The auction is scheduled for June 12 and is aimed at reducing imports of high gross calorific value (GCV) coal, which is widely used by the industry.

The company has also eased norms for the steel (coking) sector by allowing companies to sell coal middlings in the open market. Middlings are a by-product generated during the washing of raw coking coal and are typically used as power-grade coal. The provision has been introduced under the ongoing Tranche-X linkage auctions that commenced on June 3.

Coal India said it has offered 13.75 MT of coal to the steel (coking) sub-sector in the current tranche. It has also increased flexibility for consortium participants by allowing changes in consortium partners up to five times during the linkage period, compared with two changes permitted earlier.

The company further said that greenfield and brownfield projects in the non-regulated sector can secure coal linkages even before commissioning. Such projects can draw coal within three years of participating in linkage auctions, a move that could help developers secure financing by ensuring fuel availability.

Coal India noted that it continues to meet coal demand from the power sector. Between January and May of the current financial year, it offered 57.8 MT of coal under the short-term Window-II mechanism and 69.2 MT under the long- and medium-term Window-I route.

To further improve coal availability, the company will conduct the next round of short-term auctions under the SHAKTI policy on June 8, with around 34 MT of coal on offer for power sector consumers.

Coal India said the initiatives are aimed at ensuring adequate coal supply for both the power sector and non-regulated industries while supporting greater fuel security and supply flexibility.

Shares of the company were trading 1.78% down at ₹473.10 as of 1.13 pm on Friday. The stock has gained close to 25% in the last six months and nearly 20% over the year.

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