CIL offers 5mn ton coal to NTPC to reduce pithead stock

CIL has offered an additional five million tonnes of coal to the country's largest power generator NTPC with tweaked terms in a bid to reduce pithead stock.

Coal India officials said on Monday that the company has offered five million tonnes of coal to NTPC which is required to be lifted via road to reduce import.

Coal from CIL is normally transported by rakes as per Fuel Supply Agreement.

The coal ministry had pulled up Coal India and had desired that the miner dilutes it pithead stock by 10 million tonne from about 21 million tonne as on September to push supplies in the festive season.

CIL has relaxed its terms to push more coal.

The officials said that against the normal supply term of cash and carry, the release of five million tonne against this offer shall be made on credit basis without insisting on any advance payment.

NTPC would make the payment after receipt of invoices, they said.

CIL has asked NTPC to immediately contact its subsidiaries to avail the benefit of the offer and to lift the coal within 30 days of release, the officials added.