State-owned Bharat Coking Coal Limited (BCCL) has introduced a scheme offering incentives and cash discounts to power sector consumers for the first quarter of FY27 (April-June). The scheme, applicable to eligible consumers under Fuel Supply Agreements (FSA), including those in the Flexi-Linkage scheme, links incentives to actual coal offtake through various modes. Incentives will be based on the proportion of lifting against the quarterly quantity (QQ).
For coal offtake below 120% of QQ, Performance Incentive (PI) will apply only on raw coal as per existing FSA terms, with no cash discount provided. Washed power coal will not be factored into PI calculations. If offtake ranges between 120% and 140% of QQ, PI will not be applicable on quantities exceeding 90% of QQ. Additionally, a 5% cash discount will be given on coal lifted beyond 100% of QQ.
In cases where offtake exceeds 140% of QQ, PI will not apply beyond 90% of QQ, and a higher cash discount of 10% will be offered on quantities lifted beyond 100% of QQ. These discounts are only applicable to raw coking coal and washed power coal, subject to quality verification, and will be issued through credit notes for future adjustments. BCCL encourages consumers to maximize benefits by planning increased coal lifting, especially via rail, while ensuring sufficient offtake through other channels.
The initiative aims to boost coal offtake, enhance logistics efficiency, and provide cost relief to the power sector, ultimately supporting stable power generation, as stated by the PSU. Earlier in January, BCCL made its stock market debut, listing at Rs 45.21 on the BSE and Rs 45 on the NSE, nearly doubling investors’ money from the issue price of Rs 23. The Rs 1,068.78 crore IPO of Miniratna BCCL was entirely an offer for sale (OFS) priced at Rs 23 per share, with the stock being listed on January 19.
