CIL Eases Sale of Surplus Power to Open Market
POWER & RENEWABLE ENERGY

CIL Eases Sale of Surplus Power to Open Market

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.

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.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement