Coal news and updates

CIL caps supply to power units on higher outstanding

Coal India Ltd (CIL) has started restricting supply of coal to a few power plants in view of a surge in the outstanding amounts against earlier supplies, a senior official of the company told ICMW.

“Yes, we have restricted coal supplies to some plants because of an increase in outstandings. The restriction is being followed because the stock levels at power plants are quite comfortable and there is no danger of power generation getting affected,” the official said.

Reduced supplies and at the same time receipt of payment against earlier supplies will gradually bring down the outstanding levels and once it is brought to a comfortable level, the supply of coal will again be increased, the official said.

According to the official, the company had supplied higher quantities of coal to power plants in recent months without bothering about increase in outstanding.

“But we cannot keep on supplying higher quantities of coal unless the payments are received against earlier supplies and hence this restriction,” the official added.

The official did not disclose the total amount that the power plants or utilities owe to them at present, but it is estimated that the dues have crossed Rs 15,000 crore against the normal average of Rs 10,000 crore.