Coal India goes digital with fuel supply agreements

17 Oct 2024 CW Team

Coal India Ltd (CIL) announced the digitisation of its fuel supply agreement (FSA) process, allowing clients, including power sector companies, to complete contracts online, enhancing business convenience. This shift eliminates the need for physical submission of documents, with bank guarantees and other required paperwork now accepted digitally.

In its statement, CIL said, “For the first time, we have introduced online signing of FSAs for both power and non-regulated sector customers participating in linkage-based auctions.”

To streamline operations, the company has reduced the documentation required from clients. “The digital process replaces the cumbersome manual handling of large volumes of paperwork. Customers can now finalise contracts from their workplaces without visiting coal companies,” a senior executive explained.

The new system also resolves discrepancies online, avoiding the need for in-person visits to rectify errors. With hundreds of FSAs signed annually, the electronic process simplifies document management and progress tracking for both suppliers and customers.

So far, around 700 FSAs, covering 19 million tonnes of coal, have been formalised digitally for non-regulated sectors. In the power sector, 262 FSAs have been signed online, totalling 24 million tonnes.

Coal India, which contributes over 80% of the country’s coal production, expects the digital transition to improve efficiency and customer experience across sectors.

(ET)

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