Coal India Share Price in Focus; Waives Financial Coverage for NPS Consumers

Coal India Limited (CIL) has taken a significant step towards simplifying business operations by eliminating the requirement of financial coverage for its non-power sector (NPS) consumers.

Previously, NPS consumers had to pay ten days’ worth of coal value in advance for coal received through the rail mode. This decision aims to reduce transactional complexities and foster a smoother and more efficient coal supply process.

On March 3, 2025, Coal India share price opened at ₹370.00, up from its previous close of ₹369.35. At 9:40 AM, the share price of Coal India was trading at ₹360.10, down by 2.50% on the NSE.

Enhancing Liquidity for Consumers

By waiving this financial obligation, CIL is providing NPS consumers with greater cash liquidity, enabling them to allocate freed-up capital for other operational needs. The move is expected to reduce working capital pressure and improve overall financial flexibility for industries relying on coal supply.

Coal Supply and Rail Offtake

In the ongoing financial year, CIL has supplied approximately 560 million tonnes (MT) of coal to the power sector and nearly 134 MT to NPS consumers. The rail mode accounts for 55% of CIL’s total coal supplies, making this waiver highly beneficial for a large segment of its consumers.

This initiative aligns with the government’s broader push to enhance transparency, accessibility, and cost-effectiveness in business operations. CIL continues to streamline its supply chain, reinforcing its commitment to modernising coal distribution across industries in India.

Conclusion

India’s coal sector continues to demonstrate strong performance, with significant growth in both production and dispatch up to February 2025. Cumulative coal production has reached 928.95 MT, reflecting a 5.73% increase from the previous year, while dispatch has risen to 929.41 MT, marking a 5.50% growth. With continuous reforms and efficiency-driven measures, CIL remains at the forefront of supporting India’s industrial growth and energy security.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.