CIL clears the way for sale of power in Exchanges

In a major policy shift Coal India Limited (CIL) has cleared the decks for unrequisitioned surplus (URS) power generated by the thermal power plants that use CIL's linkage coal under long and medium term fuel supply agreements (FSAs), to be sold in power market and exchanges with effect from 1 August 2025.

Earlier, TPPs serving power purchase agreements (PPAs) using CIL's linkage coal could sell the electricity generated only within the confines of the PPAs as the provisions disallowed the sale of power generated from long and medium term FSAs in the power market and exchanges.

In the spirit of the revised SHAKTI policy, CIL has done away with the earlier provision of restricting the sale of power in the open market. This applies evenly to all existing as well as future long, and medium term power FSAs and extends to all the power generators - Central and State Gencos, independent power plants.

"We have been cementing our relations with consumers consistently and the policy facilitates the power sector to meet consistent demand of affordable power" said a senior official of the company.

With the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power to all.

A year ago, in August CIL paved the way allowing supplies beyond Annual Contracted Quantity (ACQ) to TPPs of the country including IPPS, doing away a provision which allowed coal supplies up to a maximum of 120% of ACQ.

For the current fiscal year CIL has around 650 million tonnes of FSAs in place for the power sector.

Shares of Coal India Limited was last trading in BSE at Rs. 379.70 as compared to the previous close of Rs. 379.50. The total number of shares traded during the day was 137988 in over 3738 trades.

The stock hit an intraday high of Rs. 382.10 and intraday low of 378.30. The net turnover during the day was Rs. 52468873.00.

Source : Equity Bulls

Keywords

CoalIndia INE522F01014 PowerSale Exchanges