Coal India Limited has informed the Exchange regarding a press release dated August 07, 2025, titled "Press release-CIL clears the way for sale of power in Exchanges".
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Coal India has allowed thermal power plants (TPPs) using its linkage coal under long and medium term fuel supply agreements (FSAs) to sell un-requisitioned surplus (URS) power in the open market and power exchanges, effective 1 August 2025. Earlier, such power had to be sold only under existing power purchase agreements (PPAs), which restricted generators' flexibility. The change follows the revised SHAKTI policy and applies to all existing and future FSAs, covering Central and State Gencos as well as independent power producers. CIL says this should help keep electricity spot prices in check and ensure affordable power. The company currently has around 650 million tonnes of FSAs in place for the power sector this fiscal year, and this move follows last year's decision allowing coal supply beyond the 120% of Annual Contracted Quantity (ACQ) limit.
This is a positive development for Coal India as it broadens the use of its linkage coal and could support stronger coal offtake and demand from power producers. For shareholders, it signals CIL's ongoing efforts to align with national power sector reforms, though the direct revenue impact will depend on how much surplus power gets routed to exchanges.