CIL offers 3-month supply pact to power companies not having sale agreements

Kolkata: Power companies lacking existing deals to sell their output must use auction platforms to find buyers if the monopoly government miner Coal IndiaNSE 2.41 % were to supply the solid fuel to these producers through three-month contracts. The net surplus generated after selling power must be used for paying off debt.

“Each power plant will also submit monthly financial statements to its principal debtors with a copy to the Central Electricity Authority (CEA) showing that the net surplus generated after meeting its operating expenses is being used for remitting its debt,” the government said, detailing the guidelines for the auction methodology.