CCAI Calls On Government To Increase Rail-based Coal Supplies To Non-power Sector To Maintain Cost Competitiveness

The Coal Consumers Association of India (CCAI) has requested that the government resume the supply of coal via rail (rake-based supply) to the non-power sector in order to maintain cost competitiveness and sustain operations. CCAI stated that the non-power sector has had to rely on road-based supplies due to a lack of sufficient rail-based supplies, which has led to higher costs for its constituent industries. CCAI pointed out that converting rail quantities to road offtake often attracts higher premiums than those already paid to Coal India Ltd (CIL) for rail-based supplies. CCAI has suggested that the government intervene and increase the number of rakes supplied to the non-regulated sector (NRS) consumers as soon as possible, given that CIL’s production and dispatch have improved significantly and the country’s peak demand has decreased in recent weeks due to the fall in temperature. CCAI has also suggested that the conversion from rail to road for coal supply be considered in the mode-agnostic single-window auction without changing the premium, in order to prevent additional expenditure for consumers.

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