DBT Bureau
Pune, 5 June 2026
In a series of business-friendly initiatives, Coal India Limited (CIL) is offering more coal to Non-Regulated Sector (NRS) consumers and providing greater operational flexibility.
In a bid to reduce import dependence on high-GCV coal, normally consumed by the sponge iron sector, CIL has put on offer an all-time high of 35 million tonnes (MTs) under the linkage auction window to be held on June 12. Bookings by these units are expected to lower imports of this grade of coal.
Agreeing to the demand of the steel (coking) sub-sector, CIL has allowed them to sell coal middlings in the open market. Middlings are power-grade coal that are a residual byproduct of washed raw coking coal. Some steel plants use middlings for their captive power plants. For quantities that are not utilized, the sub-sector has now been permitted to sell them. This provision was enabled under the ongoing Tranche-X linkage auctions that began on June 3, 2026.
CIL has offered 13.75 MTs of coal to the steel (coking) sub-sector in the current tranche, while also permitting changes in consortium partners during the linkage period. Earlier, participants had the option of changing partners twice during the contract period; this limit has now been increased to five times.
NRS consumers planning to establish greenfield or brownfield projects are allowed to secure coal linkages even before the projects are commissioned. They can source coal within three years of participating in the linkage auctions, enabling them to secure bank loans since fuel sourcing is tied up in advance. This provides them with greater leverage in the market.
Alongside, the coal linkage requirements of the power sector under different auction windows are also being met. From January to May of the current fiscal year, a total of 57.8 MTs of coal was offered under Window-II for short-term requirements, while 69.2 MTs were offered under Window-I for long- and medium-term requirements.
CIL continues to meet the coal requirements of the power sector. As a natural occurrence, coal stock levels tend to decline at coal-fired power plants during periods of peak summer demand. Therefore, a marginal decline in coal stocks at power plants is not a cause for concern, as sustained coal production by CIL is ensuring continuous replenishment of fresh stocks.
To make more coal available in the market, CIL will conduct the next round of short-term auctions under the SHAKTI policy on June 8 for power sector consumers, where around 34 MTs of coal will be put on offer.
CIL’s efforts are aligned toward ensuring greater coal availability for both the power sector and the Non-Regulated Sector (NRS).
