Coal India Ltd eases norms for coal supplies to non-regulated customers and IPPs

State-run Coal IndiaNSE -2.24 % Limited (CIL) on Friday said it has relaxed norms for supplying the fuel to its customers of non-regulated sector by extending “letter of credit” to them and allowing an independent power producer (IPP) to transfer coal from one plant to another. With the credit facility, non-regulated customers from steel, sponge iron, cement, aluminium, MSMEs and IIPs need not to make 100 per cent advance payment for coal and this will enable them to run their plants smoothly, a CIL official said.

“CIL is extending the letter of credit facility to non-regulated customers, allowing them to pay coal value through Irrevocable Revolving Letter of Credit (IRLC) mode for supplies through rail mode under fuel supply agreements executed through linkage auctions,” a statement said. This facility hitherto was extended only to power generating companies, the official said, adding that this is in “pursuance of government’s initiatives towards ease of doing business in coal sector”.