Western Coalfields offers to supply coal to power plants of Coal India’s other arms

KOLKATA: Western Coalfields has offered four million tonnes of coal to power plants currently supplied by Coal India NSE -0.62 %’s other subsidiaries. Customers can shift their existing sale contracts to Western Coalfields, the company said in a notice.

Many of its customers had shifted to mines that were further away as Western Coalfields’ output fell. However, with output rising again, it has made the offer under its ‘mine specific policy’, which charges a ‘small premium’ while power generators in central, west, or south India can make substantial savings on transport due to proximity to its mines.