Skip to main content

Coal India extends FSA tenure to 10 years for NRS

Published by , Editor
World Coal,

Coal India Ltd (CIL) has begun tranche-VII of the linkage auction to non-regulated sector (NRS) within days of completion of tranche-VI. CIL has proactively increased the tenure of fuel supply agreement (FSA) to 10 years, beginning with tranche-VII, to ensure long term assurance of coal supply through linkage auction to NRS.

For sponge iron sub-sector customers tranche-VII of linkage auction has commenced in the last week of December 2023, to meet their coal demand, even though the conversion ratio of successful bids into FSAs was low, by this sector, in tranche-VI.

“CIL is committed to supply coal to the extent of the normative requirement of all industrial sectors including sponge iron. In this endeavour regular linkage auctions, as per the government’s approved policy are being conducted for long term coal linkages”, said a senior official of CIL.

The response in tranche-VI of linkage auction for sponge iron sub-sector has been rousing with 99% of the total offered quantity of 11.05 million t being successfully booked. The booked quantity was 10.98 million t.

South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) between them accounted for 86% of the total offered quantity at 9.5 million t. While SECL put 7.67 million t under the linkage auction hammer, MCL chipped in with 1.83 million t. Almost the entire quantity was booked.

Out of the total successful booking of 7.64 million t in SECL, by the sponge iron units, only 3.88 million t or 51% was converted into FSAs. In case of MCL, 1.44 million t got converted into FSAs out of total booked quantity of 1.83 million t. CIL extended the timeline, in order to facilitate the signing of FSAs, by 75 days over and above the norm of 90 days.

Apart from long term assurance of regular supply of coal provided through linkage auction, CIL is also conducting single window e-auction where any consumer can participate and get coal for meeting short term requirements.

Ending December of the current financial year, 64 million t of coal was offered across CIL, of which 56.7 million t was successfully booked including 17.4 million t from SECL and 15.3 million t through MCL. With increased availability of coal in the last quarter of the fiscal, CIL’s offering of coal is likely to increase further under the e-auction window. The company is aiming to put 20% of the envisaged production of this fiscal’s fourth quarter under e-auction block.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

India coal news