Coal news and updates

DVC likely to suffer losses in current financial year

October 27: Constrained by various limiting factors, Damodar Valley Corporation (DVC) is expected to end up with losses in the current financial year (2014-15), company sources told ICMW.

“In line with the last few years, this year too DVC may end up with significant losses,” the sources said.

“The cash position is very poor and in recent months, there have been doubts over timely payment of salaries to employees,” they said. However, the company has not defaulted on debt servicing so far, they added.

DVC has been witnessing steady decline in its profitability since 2007-08 when it posted a profit after tax of Rs 1,125 crore. Since 2010-11, the company has been suffering post-tax losses, due to a host of factors which include non-recovery of outstanding dues, lack of fuel supply, low generation from new capacities and transmission and distribution (T&D) losses, the sources said.