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Bharat Coking Coal introduces Cash Discount Scheme for Power Sector Consumers

Published: Apr 24, 2026

By TIOLCorplaws News Service

NEW DELHI, APR 24, 2026: BHARAT Coking Coal Limited (BCCL) has announced a scheme providing relaxation in Performance Incentive (PI) and offering Cash Discount to power sector consumers for the first quarter of Financial Year 2026–27 (April–June 2026).

The scheme shall be applicable to all eligible power sector consumers covered under Fuel Supply Agreements (FSA), including those under the Flexi-Linkage scheme. The incentives will be linked to actual coal offtake through Rail, Road and RCR modes and will be implemented based on the proportion of offtake against the Quarterly Quantity (QQ) under defined slabs.

Under the scheme, for coal offtake below 120% of QQ, PI shall be applicable only on raw coal as per existing FSA provisions and no Cash Discount shall be admissible. Washed Power Coal (WPC) shall not be considered for PI calculation.

For offtake between 120% and 140% of QQ, PI shall not be applicable on quantities exceeding 90% of QQ. In addition, a Cash Discount of 5% shall be provided on coal lifted beyond 100% of QQ. The discount shall 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.

For offtake exceeding 140% of QQ, PI shall similarly not be applicable beyond 90% of QQ. A Cash Discount of 10% shall be extended on quantities lifted beyond 100% of QQ, applicable only to raw coking coal and WPC.

BCCL has advised all eligible consumers to maximise the benefits under the scheme by planning higher coal lifting, particularly through rail mode, while also 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 will strengthen the coal supply chain and support stable power generation in the country, while aligning with the vision of Atmnirbhar Bharat, amid ongoing global challenges in the energy supply chain.

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