To increase the demand for coal and reduce electricity costs, Coal India Ltd (CIL) has started allowing power plants that use its coal to sell any extra electricity on power exchanges beginning August 1.

 

Previously, power generators that had long-term or medium-term fuel supply agreements (FSAs) with CIL were only allowed to supply power under their existing power purchase agreements (PPAs).

 

Under the new policy, these generators can now sell any surplus power that is not required by the government (URS) in the open market, as per the updated SHAKTI scheme.

 

"This initiative is designed to help the power sector meet the consistent need for affordable electricity," the statement said.

 

The plan applies to all power generators, including central and state electricity boards, as well as independent power producers, who have long-term or medium-term Fuel Supply Agreements (FSAs), whether existing or upcoming.

 

With more surplus power being available in the market, it is expected that spot prices will stay consistent.

 

For the financial year 2026, Coal India Limited (CIL) has committed to supplying around 650 million tonnes of coal under FSAs for the power sector.