The board of Coal India has decided to increase the coal supply assurance to 80 per cent of the annual contracted quantity for power consumers.

The move comes at a time Coal India is looking to step up its offtake and sales as well as liquidate its pithead stocks that will grow as more coal is produced. However, coal offtake remains a concern as low economic activity on account of the lockdown translates into low power demand particularly from industry.

Earlier, the assured supply was 75 per cent of the annual contracted quantity. The subsidiaries of Coal India have been advised to immediately implement the increase which comes in the form of an amendment to the existing fuel supply agreements.

“Raising the trigger level to 80 per cent is targeted towards Gencos requiring more coal,” an official said, adding that the aim is to encourage power plants to opt for increased domestic supply and to steer them away from imports.