Coal India, the world’s largest miner, plans to give 10-15 days credit period to companies operating in the non-regulated sectors such as steel, cement, and aluminium. These companies, which are called customers in Coal India parlance, had to make an upfront payment before despatch.
Previously, such credit facility was available only to power generating companies.
In 2018-19 around 73 million tonnes (mt) of coal was supplied to the non-regulated sector under fuel supply agreements (FSA) out of a total coal offtake of 608 mt.
“NRS customers are large in numbers and working capital blockage in coal movement by rail was, of late, found to have a bearing on their health. With the introduction of this relaxed norm NRS customers can breathe easy and this move will help in sustaining their growth as well,” a Coal India release said.
