Coal India is offering increased coal supplies to Non-Regulated Sector consumers, placing a record 35 million tonnes (mn t) on offer under a linkage auction scheduled for 12 June. The move is intended to reduce import dependence for the high gross calorific value coal used by the sponge iron sector and is expected to lower imports in that grade. The initiative forms part of a broader set of measures to improve operational flexibility for consumers.

CIL has permitted the steel coking sub-sector to sell middlings in the open market, recognising that middlings are power-grade coal remaining after washing of raw coking coal. Some steel plants use middlings for captive power generation, and the sale of unused quantities has been allowed under the ongoing Tranche X linkage auctions that began on third June 2026. The provision aims to provide additional commercial avenues for the sub-sector.

In the current tranche, CIL has offered 13.75 million tonnes (mn t) to the steel coking sub-sector and has eased consortium rules, increasing the number of permissible partner changes from two to five during the linkage period. Non-regulated sector consumers planning greenfield or brownfield projects are allowed to secure coal linkages prior to commissioning and are able to source the fuel within three years of participation, strengthening bankability by tying up fuel sourcing.

Since January to May of the ongoing fiscal CIL offered 57.8 mn t under Window II for short term requirements and 69.2 mn t under Window I for long and medium term linkages, signalling continued support for the power sector. CIL noted that coal stock levels at coal fired plants tend to shrink during peak summer demand but described marginal declines as not a cause for concern given sustained production and continuous replenishment. The company will also conduct a short term auction under the SHAKTI policy on eight June where around 34 mn t will be offered.