BCCL Announces PI Relaxation And Cash Discount For Power Sector

27 Apr 2026 CW Team

Under the scheme, where offtake remains below 120 per cent of QQ, PI will be applicable only on raw coal in accordance with existing FSA provisions and no cash discount will be admissible. Washed Power Coal (WPC) will not be considered for PI calculation. The policy therefore preserves current PI treatment for lower offtake while excluding WPC from incentive computation.

For offtake between 120 per cent and 140 per cent of QQ, PI will not apply on quantities exceeding 90 per cent of QQ and a cash discount of five per cent will be provided on coal lifted beyond 100 per cent of QQ. The discount will be applicable only on raw coking coal and WPC, subject to quality confirmation, and will be issued through credit notes for adjustment against future supplies. Where offtake exceeds 140 per cent of QQ, PI will similarly be withheld beyond 90 per cent and a cash discount of ten per cent will be extended on quantities beyond 100 per cent.

BCCL has advised eligible consumers to maximise benefits by planning higher coal lifting, particularly through rail mode, while ensuring adequate offtake through road and RCR modes. The initiative is aimed at incentivising higher coal offtake, improving logistics efficiency and providing cost relief to the power sector. It is intended to strengthen the coal supply chain and support stable power generation while aligning with the vision of Atmnirbhar Bharat amid ongoing global energy supply challenges.

Bharat Coking Coal Limited (BCCL) has announced a scheme providing relaxation in Performance Incentive (PI) and offering a cash discount to power sector consumers for the first quarter of Financial Year 2026–27, covering April to June 2026. The scheme is applicable to all eligible power sector consumers covered under Fuel Supply Agreements (FSA), including those under the Flexi?Linkage arrangement. Incentives will be linked to actual coal offtake through rail, road and rail?cum?road (RCR) modes and implemented on the basis of proportion of offtake against the Quarterly Quantity (QQ) in defined slabs. Under the scheme, where offtake remains below 120 per cent of QQ, PI will be applicable only on raw coal in accordance with existing FSA provisions and no cash discount will be admissible. Washed Power Coal (WPC) will not be considered for PI calculation. The policy therefore preserves current PI treatment for lower offtake while excluding WPC from incentive computation. For offtake between 120 per cent and 140 per cent of QQ, PI will not apply on quantities exceeding 90 per cent of QQ and a cash discount of five per cent will be provided on coal lifted beyond 100 per cent of QQ. The discount will be applicable only on raw coking coal and WPC, subject to quality confirmation, and will be issued through credit notes for adjustment against future supplies. Where offtake exceeds 140 per cent of QQ, PI will similarly be withheld beyond 90 per cent and a cash discount of ten per cent will be extended on quantities beyond 100 per cent. BCCL has advised eligible consumers to maximise benefits by planning higher coal lifting, particularly through rail mode, while ensuring adequate offtake through road and RCR modes. The initiative is aimed at incentivising higher coal offtake, improving logistics efficiency and providing cost relief to the power sector. It is intended to strengthen the coal supply chain and support stable power generation while aligning with the vision of Atmnirbhar Bharat amid ongoing global energy supply challenges.

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