SINGAPORE, Aug 6 (Reuters) - State-run Coal India (COAL.NS), opens new tab has allowed utilities to sell power generated from fuel supplied under long-term deals called "linkage contracts" on power exchanges, it said in a notice on Wednesday.

The move would enable consistent demand for coal, Coal India said in the notice dated August 6, which was reviewed by Reuters.

The decision comes at a time India's coal-fired power plants are withdrawing more fuel from inventories and slashing fresh purchases from Coal India as coal use for power generation fell for a fourth month despite higher electricity demand.