Economy

Centre lowers levies on coal to support consumers

Our Bureau New Delhi | Updated on April 10, 2020

The Coal Ministry on Friday lowered the levies on the fuel to support both power and non-power consumers.

“The mark-up over the notified price for the purpose of base price in auctions to the non-regulated sector has also been reduced. Now, the auctions will be held at the notified price,” an official statement said.

“These measures are expected to give a boost to coal demand in the present situation. We will review the situation in September 2020 for further continuance,” Coal Minister Pralhad Joshi said.

Joshi on Friday announced several relief measures to Coal India Ltd (CIL) customers in the wake of Covid-19.

“Now, all coal consumers of CIL will be extended the facility of usance letter of credit, which will enable power producers and other coal consumers to avail credit in the purchase of coal,” the statement said.

Joshi also approved a relaxation in the quantity of coal for linkage consumers. Now, they can lift quantities even beyond their contracted quantity if coal is available at the mines.

The Minister also announced that no performance incentive shall be levied on power consumers if CIL supplies more than the upper limit of fuel supply agreements.

Published on April 10, 2020

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