NEW DELHI, March 2: On Sunday, Coal India Limited, a state-owned enterprise, announced that non-power sector (NPS) consumers will no longer be required to provide financial coverage for ten days’ worth of coal supply delivered via rail transport.
“By waiving the financial coverage requirement, CIL is taking a significant step to simplify transactions and create a favorable environment for efficient business operations,” the company stated.
This decision continues Coal India Ltd’s commitment to streamlining its operations as part of the broader initiative to enhance the ease of doing business.
The move is expected to alleviate the financial strain on NPS consumers, improving their cash flow and liquidity,” noted Coal India Ltd (CIL).
Increased liquidity will enable consumers to allocate funds to other operational requirements, thereby easing working capital constraints.
In the current fiscal year, CIL has supplied approximately 560 million tonnes (MT) of coal to the power sector and around 134 MT to NPS consumers as of February. Rail transport accounted for 55% of CIL’s total coal supplies.
Coal India contributes to over 80% of the country’s total coal production.
“This initiative is part of CIL’s larger vision to optimize and modernize coal supply processes across all sectors, in line with the government’s ongoing efforts to enhance transparency, accessibility, and cost-effectiveness in business operations throughout India,” the statement concluded. (PTI)
