BCCL Announces PI Relaxation, Cash Discount Scheme For Power Sector Consumers

New Delhi, Apr 24 (KNN) Bharat Coking Coal Limited (BCCL) has announced a Performance Incentive (PI) relaxation and Cash Discount scheme for power sector consumers for the first quarter of FY 2026–27 (April–June 2026), aimed at encouraging higher coal offtake and improving supply efficiency.

The scheme will be applicable to all eligible power sector consumers covered under Fuel Supply Agreements (FSA), including those under the Flexi-Linkage scheme. Incentives will be linked to actual coal offtake through rail, road and RCR modes, based on the proportion of lifting against the Quarterly Quantity (QQ).

Under the framework, for coal offtake below 120 percent of QQ, PI will apply only on raw coal as per existing FSA provisions, with no cash discount. Washed Power Coal (WPC) will not be considered for PI calculation.

For offtake between 120 percent and 140 percent of QQ, PI will not be applicable on quantities exceeding 90 percent of QQ. Additionally, a cash discount of 5 per cent will be offered on coal lifted beyond 100 per cent of QQ, applicable to raw coking coal and WPC, subject to quality confirmation.

For offtake exceeding 140 per cent of QQ, PI will similarly not apply beyond 90 percent of QQ, while a higher cash discount of 10 percent will be provided on quantities lifted beyond 100 percent of QQ. The discounts will be issued through credit notes for adjustment against future supplies.

The company has advised consumers to optimise coal lifting, particularly through rail mode, while maintaining balanced offtake through road and RCR channels.

The initiative is expected to incentivise higher coal offtake, improve logistics efficiency and provide cost relief to the power sector, while supporting stable electricity generation and strengthening the domestic coal supply chain.

(KNN Bureau)