CIL waives financial coverage for NPS consumers

New Delhi: State-owned Coal India Ltd (CIL) on Sunday said that non-power sector (NPS) consumers will not have to pay the coal value worth ten days of supply as financial coverage for the dry fuel received via rail transport.

“With the waiver of financial coverage, CIL takes an important step towards reducing transactional complexities and fostering an environment that encourages smooth and efficient business operations,” the PSU said in a statement.

The latest decision is one more step in Coal India Ltd’s ongoing efforts to streamline operations under the broader ease of doing business initiative, the company said.

“This also helps to reduce the financial burden for NPS consumers and improve their cash liquidity,” CIL noted.

The liquidity availability will allow consumers to use the capital for other operational needs and reduce the working capital pressure.

During the ongoing financial year, CIL supplied about 560 million tonnes (MT) of coal to the power sector and nearly 134 MTs to NPS consumers till February. The offtake through rail mode accounted for 55 per cent of CIL’s total supplies.