Bharat Coking Coal Limited has introduced a short-term incentive scheme for eligible power sector consumers for the first quarter of Financial Year 2026–27. The scheme offers relaxation in Performance Incentive and cash discount benefits for higher coal offtake under Fuel Supply Agreements, including consumers under the Flexi-Linkage arrangement. It applies to coal lifted through Rail, Road and RCR modes, and is designed to encourage greater lifting of coal, improve logistics efficiency and support power generation.
Scheme Coverage
The scheme is applicable to all eligible power sector consumers covered under Fuel Supply Agreements. It also includes consumers operating under the Flexi-Linkage scheme. The benefits are linked to actual coal offtake against the Quarterly Quantity, or QQ, under defined slabs.
Performance Incentive Rules
For offtake below 120% of QQ, Performance Incentive will apply only on raw coal as per existing FSA provisions. Washed Power Coal will not be counted for PI calculation. For offtake between 120% and 140% of QQ, PI will not apply on quantities beyond 90% of QQ. For offtake above 140% of QQ, the same restriction will continue for quantities beyond 90% of QQ.
Cash Discount Structure
A cash discount of 5% will be given on coal lifted beyond 100% of QQ when offtake is between 120% and 140% of QQ. A higher discount of 10% will apply on coal lifted beyond 100% of QQ when offtake exceeds 140% of QQ. The discount is limited to raw coking coal and Washed Power Coal, subject to quality confirmation. It will be issued through credit notes for adjustment against future supplies.
Objective and Sector Impact
BCCL has urged consumers to maximise benefits by planning higher coal lifting, especially through rail mode. The scheme also encourages balanced use of road and RCR transport. The initiative is intended to strengthen the coal supply chain, reduce supply-side inefficiencies and support stable electricity generation. It also aligns with the broader goal of Atmnirbhar Bharat amid global energy supply chain challenges.
Last Modified: April 25, 2026