Non-power sector consumers need not pay coal value worth 10 days of supply: CIL

New Delhi: State-owned Coal India Limited (CIL) on Sunday said that non-power sector (NPS) consumers will not have to pay the coal value worth ten days of supply as financial coverage for the dry fuel received via rail transport. The move of the government comes at a time when Coal India is struggling to streamline operations under the broader ease of doing business initiative.

“With the waiver of financial coverage, CIL takes an important step towards reducing transactional complexities and fostering an environment that encourages smooth and efficient business operations,” the PSU said in a statement, adding that this step helps to reduce the financial burden for NPS consumers and improve their cash liquidity.

The liquidity availability will allow consumers to use the capital for other operational needs and reduce the working capital pressure. During the ongoing financial year, CIL supplied about 560 million tonnes (MT) of coal to the power sector and nearly 134 MTs to NPS consumers till February. The off-take through rail mode accounted for 55 per cent of CIL’s total supplies.

Coal India accounts for over 80 per cent of domestic coal output. This initiative is also part of CIL’s broader vision to optimise and modernise coal supply processes for all sectors, aligning with the government's ongoing push to make business operations more transparent, accessible, and cost-effective for industries across India.