CIL Eases Sale of Surplus Power to Open Market

08 Aug 2025 CW Team

In a significant policy shift, Coal India Limited (CIL) has approved the sale of unrequisitioned surplus (URS) power generated by thermal power plants using its linkage coal under long- and medium-term fuel supply agreements (FSAs) in the open power market and exchanges, effective from 1 August 2025.

Previously, thermal power plants (TPPs) supplying electricity under power purchase agreements (PPAs) using CIL’s linkage coal were restricted from selling any power outside the bounds of those agreements. The earlier policy disallowed electricity generated from FSAs to be sold in the open market.

Aligning with the revised SHAKTI policy, CIL has removed this restriction, allowing all power generators—Central and State government-run plants, as well as independent power producers—to participate in the power exchanges with surplus electricity generated from CIL-linked coal.

A senior CIL official commented, “We have been strengthening our relationship with consumers. This new policy enables the power sector to meet consistent demand for affordable electricity.”

The availability of additional power on exchanges is expected to help stabilise spot prices, promoting affordable supply across the country.

In a similar move last August, CIL had lifted a cap on coal supplies, previously limited to 120 per cent of the Annual Contracted Quantity (ACQ), permitting supplies beyond the cap for all TPPs, including independent power producers.

For the current financial year, CIL has about 650 million tonnes of FSAs committed to the power sector, underscoring its central role in supporting energy availability and pricing stability.

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