CIL lifts restriction on market sale of surplus power from linkage coal plants

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CIL lifts restriction on market sale of surplus power from linkage coal plants



KOLKATA: Coal India Limited (CIL) has cleared the decks for un-requisitioned surplus (URS) power generated by thermal power plants (TPPs) using CIL’s linkage coal under long and medium-term fuel supply agreements (FSAs) to be sold in the 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 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 power generators – Central and State Gencos, and independent power plants.“We have been cementing our relations with consumers consistently and the policy facilitates the power sector to meet consistent demand for affordable power,” a senior CIL official said.According to experts, with the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power for all.In August last year, CIL paved the way for allowing supplies beyond the Annual Contracted Quantity (ACQ) to TPPs in the country, including IPPs, doing away with a provision which allowed coal supplies up to a maximum of 120% of the ACQ.For the current fiscal year, CIL has around 650 million tonnes of FSAs in place for the power sector.



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