Bharat Coking Coal announces scheme to encourage higher coal offtake, cut costs for power consumers
New Delhi: Coal India subsidiary Bharat Coking Coal Ltd (BCCL) on Thursday announced a scheme to encourage higher coal offtake and reduce costs for power consumers for buying coal during the April-June period of the current financial year.
The move aims at encouraging power companies to buy more coal, speed up transport, and cut their costs. It will improve coal supply, ensure steady electricity, and support India's self-reliance goal amid global energy issues.
The scheme will apply to all eligible power sector consumers covered under the fuel supply pact, including those under the flexi-linkage scheme.
The incentives will depend on actual coal lifted by power firms via rail, road or road-cum-rail modes, and will match the share of their quarterly target under set slabs.
"Under the scheme, for coal offtake below 120 per cent of Quarterly Quantity (QQ), Performance Incentive (PI) shall be applicable only on raw coal as per existing FSA(fuel supply agreement) provisions, and no cash discount shall be admissible," an official statement said.
For offtake between 120 per cent and 140 per cent of QQ, PI will not be applicable on quantities exceeding 90 per cent of QQ. In addition, a Cash Discount of five per cent will be provided on coal lifted beyond 100 per cent of QQ.
BCCL has advised all eligible consumers to maximise the benefits under the scheme by planning higher coal lifting, particularly through rail mode, while also ensuring adequate offtake through road and RCR modes.
BCCL is one of the largest coking coal producers in the country.
BCCL has reported a 58.9 per cent decline in net profit at Rs 27.28 crore for the quarter ended March 31, 2026, on the back of lower revenue.
The company had posted a net profit of Rs 66.50 in the year-ago period, Bharat Coking Coal Ltd (BCCL) said in a filing to BSE on Wednesday.
The move aims at encouraging power companies to buy more coal, speed up transport, and cut their costs. It will improve coal supply, ensure steady electricity, and support India's self-reliance goal amid global energy issues.
The scheme will apply to all eligible power sector consumers covered under the fuel supply pact, including those under the flexi-linkage scheme.
The incentives will depend on actual coal lifted by power firms via rail, road or road-cum-rail modes, and will match the share of their quarterly target under set slabs.
"Under the scheme, for coal offtake below 120 per cent of Quarterly Quantity (QQ), Performance Incentive (PI) shall be applicable only on raw coal as per existing FSA(fuel supply agreement) provisions, and no cash discount shall be admissible," an official statement said.
For offtake between 120 per cent and 140 per cent of QQ, PI will not be applicable on quantities exceeding 90 per cent of QQ. In addition, a Cash Discount of five per cent will be provided on coal lifted beyond 100 per cent of QQ.
BCCL has advised all eligible consumers to maximise the benefits under the scheme by planning higher coal lifting, particularly through rail mode, while also ensuring adequate offtake through road and RCR modes.
BCCL is one of the largest coking coal producers in the country.
BCCL has reported a 58.9 per cent decline in net profit at Rs 27.28 crore for the quarter ended March 31, 2026, on the back of lower revenue.
The company had posted a net profit of Rs 66.50 in the year-ago period, Bharat Coking Coal Ltd (BCCL) said in a filing to BSE on Wednesday.
