Coal India Limited (CIL) announced today that it will implement a uniform interest rate policy for delayed payments, effective October 1, 2024. The new rate, set at the Reserve Bank of India’s Repo Rate plus 3%, aims to simplify billing processes and reduce customers’ financial stress.
The shares of Coal India Limited (CIL) were trading at ₹512.35 down by ₹3.75 or 0.73 per vent on the NSE today at 12.55 am.
This change addresses the previous interest rate disparity, ranging from 9.5% to 14.85% across various Fuel Supply Agreements (FSAs). The revision applies to all outstanding receivables, adjustments, and recoverable sums after their due dates.
CIL’s Board approved this policy amendment in late July 2024, responding to customer requests for more consistent rates. The new approach is expected to benefit a wide range of coal consumers, as CIL’s annual contracted quantity for FY 2025 totals 705.7 million tonnes across different FSA types.
The company emphasized that this move is part of its ongoing efforts to improve customer relations and ease of business. CIL stated that the standardized rate would be “much lower than earlier rates,” potentially alleviating financial pressure on its clients.