Performance Incentive (PI) and offering Cash Discount-BCCL
Why in News?
Bharat Coking Coal Limited (BCCL) announced on April 22-23, 2026, Performance Incentive (PI) relaxation and graded cash discount scheme for power sector consumers for the first quarter of Financial Year 2026–27 (April–June 2026).
Eligibility & Applicability
- Beneficiaries: Power sector consumers with Fuel Supply Agreements (FSA), including those under Flexi-Linkage schemes.
- Modes of Transport: Applies to coal lifted via Rail, Road, and Rail-cum-Road (RCR) modes.
Performance Incentive (PI) Relaxation
- Offtake >120% of Quarterly Quantity (QQ): PI is waived for quantities exceeding 90% of QQ.
- Offtake <120% of QQ: No relaxation; existing FSA provisions apply (PI charged on raw coal).
- Exclusion: Washed Power Coal (WPC) is not considered for PI calculation in lower slabs.
Cash Discount Structure
- 120% to 140% of QQ: A 5% cash discount on coal lifted beyond 100% of QQ.
- Above 140% of QQ: A 10% cash discount on coal lifted beyond 100% of QQ.
- Eligible Coal Types: Discounts apply to raw coking coal and Washed Power Coal (WPC), subject to quality checks.
- Method of Payment: Discounts are issued via credit notes to be adjusted against future supplies.
Strategic Goals
- Logistics Push: BCCL is specifically encouraging consumers to plan higher lifting via Rail mode to clear stocks efficiently.
- Cost Reduction: By removing "extra charges" (PI) and adding discounts, BCCL is lowering the marginal cost of coal for utilities, as detailed by The Policy Edge.
- Operational Relief: The initiative helps manage mine-head stocks while supporting national energy security, according to the Government of India.
Download Pdf
