Coal India board approved the giving up of performance incentive for supply of higher grades coal to consumers having fuel supply agreement with the miner to improve lifting of coal, the company said on Tuesday.
"Coal India Ltd (CIL) board accorded its approval for giving up performance incentive for supply of higher grades of coal (G5 and above) in the Model Fuel Supply Agreement for power and non-power with immediate effect and to improve lifting of coal," the company said in regulatory filing to BSE.
The miner said this decision was taken due to fall in international coal prices and improved supply by it.
There is a sluggishness in coal demand in general and higher grade of coal in particular, the company said.