Coal India Ltd (CIL) has decided to continue with the dispensation of performance incentive for coal supplies to power utilities under FSA for the final quarter of FY 21 (Jan ’21 to Mar ’21).
The miner had previously withdrawn performance incentive along with removal of upper cap on notified price for coal auctions till Sep ’20, in order to provide much needed financial relief to the customers.
While, the upper cap has been restored to 10% in case of auction from Oct ’20, relaxation on performance incentive has been extended in phases, first till Dec ’20 and now for another three months.
Under the provision, power producers can avail coal supply in excess of 90% of ACQ (Annual Contracted Quantity) without having to pay additional amount in the form of performance incentive, which in turn would assist CIL in liquidating the surplus inventory.
Notably, plant operators have been regulating coal supplies in the wake of elevated stockpiles, which is currently assessed at 36.83 mn t as on 10 Jan ’21, sufficient for 21 days of power generation.
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