Coal India waives off financial coverage for non-power sector consumers

Coal India (CIL) in a latest decision has done away with the financial coverage, of ten days of coal value that its non-power sector (NPS) consumers were required to pay CIL for the coal they receive through rail mode.

With the waiver of financial coverage, CIL takes an important step towards reducing transactional complexities and fostering an environment that encourages smooth and efficient business operations.

The latest decision is one more step in CIL's ongoing efforts to streamline operations under the broader ease of doing business initiative. This also helps reducing financial burden for NRS consumers and improve their cash liquidity said a CIL executive.

 

The liquidity availability enables consumers to use the freed-up capital for other operational needs and reduce the working capital pressure.

During the ongoing financial year CIL supplied about 560 million tonnes (MT) of coal to power sector and nearly 134 MTs to NPS consumers till February. The offtake through rail mode accounted for 55% of CIL's total supplies.

This initiative is also part of CIL's broader vision to optimize and modernize coal supply processes for all sectors, aligning with the government's ongoing push to make business operations more transparent, accessible, and cost-effective for industries across India.

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