**Executive Summary**
Bharat Coking Coal Limited (BCCL) has introduced a scheme for Performance Incentive (PI) relaxation and cash discounts for power sector consumers during Q1 FY 2026–27 (April–June 2026). The initiative aims to incentivize higher coal offtake and provide cost relief to the power sector while strengthening the coal supply chain. Eligible consumers are advised to maximize benefits by planning increased coal lifting through rail, road, and RCR modes.
**Key Points / Main Content**
* **Eligibility and Scope**
* The scheme applies to all power sector consumers under Fuel Supply Agreements (FSA), including Flexi-Linkage schemes.
* Incentives are linked to actual offtake via Rail, Road, and Road-cum-Rail (RCR) modes.
* Benefits are implemented based on offtake proportions against the defined Quarterly Quantity (QQ).
* **Performance Incentive (PI) Relaxations**
* For offtake below 120% of QQ: PI is applicable only on raw coal; Washed Power Coal (WPC) is excluded from PI calculations.
* For offtake above 120% of QQ: PI shall not be applicable on quantities exceeding 90% of the QQ.
* **Cash Discount Provisions**
* Offtake between 120% and 140% of QQ: A 5% cash discount is offered on coal lifted beyond 100% of the QQ.
* Offtake exceeding 140% of QQ: A 10% cash discount is offered on coal lifted beyond 100% of the QQ.
* Discounts apply strictly to raw coking coal and WPC, subject to quality confirmation.
* Discounts will be issued via credit notes for adjustment against future supplies.
**Impact Analysis**
**Power Sector Consumers**
**Impact**
Consumers receive significant cost relief through reduced performance incentive penalties and tiered cash discounts for high-volume offtake.
**Action Required**
Consumers must plan for higher coal lifting volumes, specifically targeting levels above 100% of their Quarterly Quantity, and prioritize rail, road, and RCR modes to maximize financial benefits.
**Bharat Coking Coal Limited (BCCL)**
**Impact**
The scheme facilitates higher coal evacuation, improves logistics efficiency, and supports a more stable supply chain for national power generation.
**Action Required**
BCCL must monitor offtake levels, conduct quality confirmations for raw coking coal and WPC, and issue credit notes for eligible discounts to be adjusted against future supplies.
Key Entities Referenced
PI Relaxation and Cash Discount Scheme: A targeted initiative for Q1 FY 2026-27 providing performance incentive relaxations and cash discounts to incentivize higher coal offtake by power sector consumers.
Bharat Coking Coal Limited (BCCL): The primary organization responsible for implementing the incentive scheme to enhance logistics efficiency and support stable power generation.
Fuel Supply Agreements (FSA): The foundational contractual framework used to define eligibility and baseline supply conditions for the incentive scheme.
Flexi-Linkage scheme: A specific coal allocation policy whose consumers are explicitly covered under the scope of this new discount initiative.
Ministry of Coal
Bharat Coking Coal Limited Introduces PI
Relaxation and Cash Discount Scheme for Power
Sector Consumers in Q1 FY 2026-27
Posted On: 23 APR 2026 6:53PM by PIB Delhi
Bharat Coking Coal Limited (BCCL) has announced a scheme providing relaxation in Performance
Incentive (PI) and offering Cash Discount to power sector consumers for the first quarter of Financial Year
2026–27 (April–June 2026).
The scheme shall be applicable to all eligible power sector consumers covered under Fuel Supply
Agreements (FSA), including those under the Flexi-Linkage scheme. The incentives will be linked to
actual coal offtake through Rail, Road and RCR modes and will be implemented based on the proportion
of offtake against the Quarterly Quantity (QQ) under defined slabs.
Under the scheme, for coal offtake below 120% of QQ, PI shall be applicable only on raw coal as per
existing FSA provisions and no Cash Discount shall be admissible. Washed Power Coal (WPC) shall not
be considered for PI calculation.
For offtake between 120% and 140% of QQ, PI shall not be applicable on quantities exceeding 90% of
QQ. In addition, a Cash Discount of 5% shall be provided on coal lifted beyond 100% of QQ. The
discount shall be applicable only on raw coking coal and WPC, subject to quality confirmation, and will
be issued through credit notes for adjustment against future supplies.
For offtake exceeding 140% of QQ, PI shall similarly not be applicable beyond 90% of QQ. A Cash
Discount of 10% shall be extended on quantities lifted beyond 100% of QQ, applicable only to raw coking
coal and WPC.
BCCL has advised all eligible consumers to maximise the benefits under the scheme by planning higher
coal lifting, particularly through rail mode, while also ensuring adequate offtake through road and RCR
modes.
The initiative is aimed at incentivising higher coal offtake, improving logistics efficiency, and providing
cost relief to the power sector. It will strengthen the coal supply chain and support stable power generation
in the country, while aligning with the vision of Atmnirbhar Bharat, amid ongoing global challenges in the
energy supply chain.
****
Shuhaib T
(Release ID: 2254953) Visitor Counter : 242Read this release in: Telugu , Urdu , ही