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Coal India modifies long-term supply deals to allow power sale on exchanges

The move would enable consistent demand for coal, Coal India said in the notice dated August 6, which was reviewed by Reuters

The decision comes at a time India's coal-fired power plants are withdrawing more fuel from inventories and slashing fresh purchases from Coal India. (Photo: CIL website)

Reuters SINGAPORE

1 min read Last Updated : Aug 06 2025 | 3:14 PM IST

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State-run Coal India has allowed utilities to sell power generated from fuel supplied under long-term deals called "linkage contracts" on power exchanges, it said in a notice on Wednesday.

The move would enable consistent demand for coal, Coal India said in the notice dated August 6, which was reviewed by Reuters.

The decision comes at a time India's coal-fired power plants are withdrawing more fuel from inventories and slashing fresh purchases from Coal India as coal use for power generation fell for a fourth month despite higher electricity demand.

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