Coal India allows 10-day credit period to customers for non-power sector

Coal India has decided to allow credit period of 10 days for its customers from the non-regulated sector like steel, cement, aluminium and others who had to pay the full amount upfront before any despatch could be made.

This will, the company believes, not only help Coal India increase its offtake, but it will also address working capital constraints of the consumer firms.

According to a Coal India official, working capital blockage in coal movement by railways had been restraining the consumers’ financial health, which now could be addressed by allowing a credit period.

Earlier, a significant amount of money deposited by non-power sector consumers against coal, despatched by the rail mode, was locked up in the form of an advance and the same could not be utilised by the steel and other non-power companies in subsequent coal purchases.