Coal India urges government to help recover dues

KOLKATA: Dues of power plants to Coal India increased to Rs 12,300 crore at the end of February from Rs 9,000 crore in May last year, prompting officials of the state-run monopoly miner to request the power ministry to intervene and help recover the amount.

At a recent meeting with power ministry officials, Coal India executives said that the miner’s priority was to more than double coal inventory levels at power plants to 30 million tonnes from the present level of 14 million tonnes but they requested that the ministry should impress upon power plants to clear the dues at the earliest. According to the minutes of the meeting, the dues had continued to rise even as it was earlier proposed that outstanding dues be cleared within 90 days.

A senior Coal India official said that the dues had been on the rise because power companies had not been receiving their dues and were in turn unable to settle the due of Coal India.

As per fuel supply agreements between Coal India and power companies, coal is supplied on cash-and-carry basis. However, supplies to states and central generating companies are not regulated due to intermittent payment constraints.

Nevertheless, it was decided at the meeting that coal supply to the state and central generating companies may be regulated corresponding to the current payment if undisputed outstanding dues are more than 90 days’ equivalent coal values, the official said, speaking on condition of anonymity.

The ministry said at the meeting that efforts should be made by coal companies and railways to improve coal supply to the power stations so that power stations have sufficient coal stock to meet their requirement and build up their stock to the levels that there is no shortage of coal during the next monsoon season, between June and September 2018. Coal India and the railways plan to jointly load 332 rakes a day till March-end. Of this, power sector would be getting 274 rakes per day – 220 rakes from Coal India sidings, 25 rakes from private washeries and 29 rakes from goodsheds.

The requirement of power companies for 2018-19 is estimated at 288 rakes per day. Of this 244 rakes would have to be from Coal India sidings, 24 rakes from washeries and 20 rakes from goodsheds.

The balance requirement of coal would be met from the Singareni Collieries Company Limited (53 million tonnes), captive mines (37 million tonnes) and from e-auction (12 million tonnes).