BCCL Offers Performance Incentive Waiver & Up to 10% Cash Discount to Power Sector in Q1 FY27

Bharat Coking Coal Limited (BCCL) has announced a waiver of Performance Incentive (PI) along with a graded cash discount for the first quarter of FY 2026–27 (April–June 2026), extending significant relief to power sector consumers.

The scheme will be applicable to all power utilities operating under a Fuel Supply Agreement (FSA) with flexi-linkage provisions. The incentives will be calculated based on actual coal lifting through rail, road, and RCR modes, aligned with prescribed Quarterly Quantity (QQ).

Key Highlights of the Scheme

🔹 Less than 120% of QQ (Below Threshold Category)

• PI applicable only on raw coal as per FSA norms
• No cash discount applicable
• Washed Power Coal (WPC) excluded from PI calculation

🔹 120% to 140% of QQ (Incentivised Slab)

• No PI applicable on coal lifted beyond 90% of QQ
• 5% cash discount on quantity lifted above 100% of QQ
• Applicable on raw coking coal and WPC
• Discount issued via credit note post quality verification

🔹 Above 140% of QQ (Maximum Incentive Slab)

• PI waived on offtake beyond 90% of QQ
• 10% cash discount on quantity above 100% of QQ
• Applicable on raw coking coal and WPC

Strategic Push for Higher Coal Movement

BCCL has urged consumers to maximize coal evacuation via rail transport to derive full benefits under the scheme, while maintaining adequate lifting through road and RCR channels.

Sectoral Impact

This move is expected to:

• Enhance coal offtake and streamline supply chains
• Improve logistics utilization, especially rail evacuation
• Provide cost relief to thermal power producers
• Strengthen reliability and stability of power generation

At a time of evolving global energy challenges, the initiative reinforces India’s push towards energy security and Aatmanirbhar Bharat by ensuring steady domestic coal supply.