Saturday, June 25, 2022

Power sector dues to Coal India hovering around Rs 15,000 cr for last 4 months

Must read

  • At the end of January, the total outstanding dues payable by the power sector stood at Rs 15,097.01 crore
  • In 2021, the figure was at Rs 15,088.42 crore at the end of December, Rs 15,243.26 crore at the end of November and at Rs 14,598.58 crore at the end of October

New Delhi: The total outstanding dues payable by the power sector to state-run Coal India Ltd (CIL) has been hovering around Rs 15,000 crore for the last four months. It makes for a worrisome trend especially in the backdrop of an urgent plea made by Coal India Chairman and Managing Director Pramod Agrawal recently when he said that a rise in prices of coal is “very, very urgent” for CIL and without it, the survival of its subsidiaries is at stake. 

At the end of January, the total outstanding dues payable by the power sector stood at Rs 15,097.01 crore. In 2021, the figure was at Rs 15,088.42 crore at the end of December, Rs 15,243.26 crore at the end of November and at Rs 14,598.58 crore at the end of October. At the end of September 2021, the dues owed by power sector was at Rs 16,028.41 crore, which means that the last decrease in dues was recorded in October.

‘CIL making all-out efforts to get dues cleared’

A source who spoke to PSU Watch pointed out that during the period, the coal despatch to the power sector has went up by several times in the wake of the coal stock crisis that faced thermal power plants in the country in 2021. “CIL has been writing to them consistently, has been making all-out efforts to get the dues cleared. But it is taking time,” the source added.

Power sector dues to Coal India

Recently, at an investor call conference, the CIL Chairman had assured investors that the dues owed by the power sector to Coal India are expected to come down significantly by the end of the financial year. On being asked about the status of receivables, Agrawal had said, “I think we should get back to that stage which was earlier by the end of March because some of the state governments have requested us to bear with them till March-end and they have agreed that by March end, they will clear most of their dues so I am quite hopeful that we should come in the range of minus 10,000 by the end of March,” he had said.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

- Advertisement -

More articles

- Advertisement -

Latest News