This move removes earlier restrictions which limited such power sales to only within the confines of power purchase agreements (PPAs). The company said the revision is in line with the spirit of the SHAKTI policy and applies uniformly to all existing and future long- and medium-term FSAs.
It also covers Central and State gencos as well as independent power producers. “With the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power to all,” said Coal India.The development is expected to benefit the power sector by facilitating smoother electricity supply and stabilising spot prices, especially during high-demand periods.
Also Read: Coal India Q1 profit drops 20% YoY, beats estimates; declares interim dividend
In a similar move last August, Coal India had done away with the 120% ceiling on coal supply beyond the Annual Contracted Quantity (ACQ), allowing flexibility for power producers.
For FY26, Coal India has around 650 million tonnes of coal committed under FSAs for the power sector.
Post announcement, shares of Coal India hit an intraday high of ₹379, over 1% up on NSE
