New Delhi: To increase coal offtake by the power sector, Bharat Coking Coal Limited (BCCL) has introduced a scheme under which it is providing relaxation in Performance Incentive (PI) and offering cash discount to power sector consumers for the first quarter of FY2026–27 (April–June 2026). The company said the scheme will apply to all eligible power sector consumers under Fuel Supply Agreements (FSA), including those covered by the Flexi-Linkage scheme.
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BCCL said the incentives will be linked to actual coal offtake through rail, road and RCR (Rail-cum-Road) modes, and the benefits will be decided according to the proportion of offtake against the Quarterly Quantity (QQ) under defined slabs.
For offtake below 120 percent of Quarterly Quantity, the company said, Performance Incentive will be applicable only on raw coal, in line with the existing FSA provisions, while no cash discount will be admissible. It also said washed power coal will not be considered for PI calculation in this slab.
For consumers lifting coal between 120 percent and 140 percent of Quarterly Quantity, BCCL said PI will not be applicable on quantities exceeding 90 percent of QQ. In this range, a 5 percent cash discount will be available on coal lifted beyond 100 percent of QQ. The company said the discount will apply only to raw coking coal and washed power coal, subject to quality confirmation, and will be issued through credit notes for adjustment against future supplies.
For coal offtake exceeding 140 percent of Quarterly Quantity, BCCL said PI will similarly not apply beyond 90 percent of QQ. It added that a 10 percent cash discount will be extended on quantities lifted beyond 100 percent of QQ, again limited to raw coking coal and washed power coal.
Indian coal, both coking and non-coking, typically has high ash content. In sectors such as steel, coking coal with high ash levels must be washed to make it suitable for use. Coking coal that continues to have high ash content even after washing, and therefore cannot be used by the steel industry, is termed washed power coal (WPC). This can be utilised by coal-based thermal power plants, and BCCL supplies WPC to power sector consumers.
India imported around 55 million tonnes (MT) of coking coal last year and is seeking to substitute this with domestic supplies to the extent possible. BCCL remains the only coal mining company that holds the bulk of India’s prime coking coal reserves.
Hitesh Verma, General Manager and Head of Marketing and Sales at BCCL, described the introduction of the scheme as a “historical” decision for Coal India Limited. “In the short-term, as prices of imported coal remains elevated due to the West Asia crisis, the scheme will serve the dual purpose of making more and more domestic coking coal available to the steel industry, while also increasing coal availability for the power sector (through WPC),” he said.
He added that coal demand from the power sector typically rises during the summer months, and the scheme is intended to ensure adequate availability for thermal power plants as they ramp up generation. “The scheme has been introduced for Q1, ie, until June 30. However, after June 30, if the country still requires more coal, we will extend the scheme further.”
Verma also said that as BCCL expands its washery capacity, the availability of washed power coal for the power sector is expected to increase.
The company said eligible consumers have been advised to maximise the benefits under the scheme by planning higher coal lifting, especially through rail mode, while ensuring adequate offtake through road and RCR modes.
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BCCL said the initiative is intended to encourage higher coal offtake, improve logistics efficiency and provide cost relief to the power sector. It added that the scheme is also meant to strengthen the coal supply chain and support stable power generation in the country, while aligning with the vision of Atmnirbhar Bharat amid global energy supply chain challenges.