Coal India auctions 35 MT to NRS, June 2026, to curb imports

What Coal India announced and why it matters

Coal India Limited (CIL) has rolled out a set of measures aimed at increasing coal availability for Non-Regulated Sector (NRS) consumers and improving operational flexibility. The announcements centre on higher volumes offered through linkage auctions, new permissions for the steel (coking) sub-sector, and a change that lets upcoming projects secure coal linkages ahead of commissioning. In parallel, the company said it will continue to run auctions under the SHAKTI policy to supply the power sector.

A key near-term trigger is CIL’s plan to offer a record quantity of 35 million tonnes (MT) in an NRS linkage auction window scheduled for June 12. CIL said the move is intended to reduce import dependence of high GCV coal typically consumed by the sponge iron segment.

June 12: Record 35 MT linkage auction for NRS

CIL said it will offer an all-time high 35 MT under a linkage auction window on June 12. The company’s stated intent is to curb imports of high GCV coal, particularly for sponge iron consumers. This is positioned as part of a broader attempt to make domestic coal availability easier for industrial users outside the regulated power segment.

Separately, CIL informed stock exchanges that it will allow supplies to exceed the annual contracted quantity (ACQ) for NRS customers in long-term linkage auctions. This change is set to take effect from Tranche VIII linkage auction, beginning with the cement and captive power plant sub-sectors. The company also stated it will levy a performance incentive of 50% over the bid price in linkage auctions for non-power sectors when supplying coal beyond the annual contract volume.

June 8: SHAKTI auction offers 34 MT for power sector

To increase market availability, CIL said the next round of short-term auctions under the SHAKTI policy will be conducted on June 8 for power sector consumers. Around 34 MT of coal will be offered in this auction.

The company also provided context on recent offerings under the SHAKTI framework. Between January and May in the ongoing fiscal, the short-term offer under Window-II totalled 57.8 MT, while the long and medium-term offer under Window-I was 69.2 MT. These figures were cited as part of CIL’s effort to keep additional volumes available to the power market.

Steel sector: Sale of coal middlings and other flexibilities

CIL agreed to a demand from the steel (coking) sub-sector by permitting them to sell coal middlings in the open market. The company described middlings as power grade coal that remains as a residual byproduct after washing raw coking coal. While some steel plants use middlings for captive power generation, the new provision allows the sale of surplus quantities.

CIL said this facility has been enabled under the ongoing Tranche-X linkage auctions, which began on June 3, 2026. Alongside this, the company permitted changes in consortium partners during the linkage period, expanding the allowed number of changes from two times to five times over the contract.

Linkages before commissioning for greenfield and brownfield projects

For NRS consumers planning greenfield or brownfield projects, CIL said they can secure coal linkages even before commissioning. The company said these participants can source coal within three years after participation in the linkages. CIL also linked this provision to project financing, noting that the arrangement helps in securing bank loans because fuel sourcing is tied up.

This is a material procedural change for project developers because fuel linkage certainty is often a key condition in project underwriting. The announcement, however, is limited to the timelines and eligibility described by CIL, with sourcing allowed within three years of participation.

Operational changes: ACQ relaxation, inter-plant transfer, transport flexibility

CIL’s stock exchange disclosure said it will allow coal supplies beyond ACQ in long-term NRS linkage auctions from Tranche VIII onwards. The company described the policy as applicable from Tranche VIII, starting with cement and captive power plant sub-sectors.

CIL also introduced provisions for inter-plant coal transfer and a flexible transport mode option that allows switching from rail to road, beginning from the eighth tranches. These measures are framed as operational levers for end-users who need flexibility in how coal is moved and allocated across facilities.

Key numbers and policy points at a glance

Market impact and why the changes are being watched

CIL’s measures target two key concerns for industrial consumers: availability and flexibility. The June 12 auction volume of 35 MT is explicitly tied by the company to reducing import dependence of high GCV coal used by the sponge iron sector. If implemented as outlined, higher domestic availability could reduce the need for spot imports for certain users, though the actual outcome will depend on bidding, lifting and logistics execution.

On the power side, the SHAKTI auction of 34 MT on June 8 follows sizable offerings cited by CIL for January-May in the ongoing fiscal: 57.8 MT (Window-II) and 69.2 MT (Window-I). These disclosures provide a snapshot of how supply is being channelled through different auction windows.

CIL also disclosed that NRS dispatches rose 22% year-on-year to 163 MT in FY24. In another update, the company said supplies to the non-regulated sector rose 31% to 98 MT in the April-December period of the current fiscal. Together, these numbers show NRS has been a growing channel for coal movement, even as the company maintains commitments to the power sector.

Policy context from prior tranches and earlier changes

CIL’s linkage auction structure for NRS follows Ministry of Coal policy guidelines dated 15.02.2016, covering sub-sectors such as sponge iron, cement, captive power plants, steel (coking) and others. The policy framework has seen multiple adjustments over time.

CIL previously said it increased the tenure of fuel supply agreements for the non-regulated sector to 10 years from 5 years, beginning with the seventh tranche. The government also approved revised tenure for coking coal linkages in NRS auctions, allowing tenure up to 30 years. Separately, earlier policy language referenced maximum FSA tenures set by the Ministry of Coal, and the modification was communicated to CIL for action.

Conclusion

Coal India’s June calendar is anchored by two large auctions: 35 MT for NRS consumers on June 12 and 34 MT under SHAKTI for power sector consumers on June 8. Alongside volume offerings, CIL has announced policy relaxations that include supply beyond ACQ (with an added incentive mechanism), sale of coal middlings for the steel (coking) segment, and operational flexibilities such as inter-plant transfer and transport mode switching. The next milestones are the two scheduled auctions and the rollout of the Tranche VIII-linked provisions as stated by the company.