CIL to extend Usance LC facility to power, non-power consumers
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CIL to extend Usance LC facility to power, non-power consumers

Agency News

New Delhi, Apr 9: Coal India Limited is supplying about 80 per cent of its coal to Power Sector consumers and 550 million tonne coal has been offered in the current year 2020-21, a Coal Ministry statement said here on Thursday.

To provide relief to the power sector consumers and increase liquidity in the system, CIL has already allowed the facility of Usance Letter of Credit to power sector consumers for payment of coal instead of cash advance for the Fuel Supply Agreements (FSA). This will help significantly in improving the working capital cycle of the generators. CIL has also introduced the same mechanism for customers of non-power sectors in April 2020.(UNI)

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