Coal news and updates

Power sector dues to Coal India up 4.5 per cent to ₹12,819 cr in April

CIL regularly do follow-ups for early recovery of dues from customers

The outstanding dues to state-run Coal India (CIL) from the power sector rose by 4.5 per cent month-on-month to ₹12,819.41 crore in April 2022

Outstanding dues to the coal miner declined by 18 per cent in March this year from ₹15,037.32 crore in February 2022. This is the lowest dues for the month in the last four years.

The average cost of production of coal by CIL is ₹1,310.88 per tonne. The lowest dues in the past several years were recorded at the end of March 2019 at ₹8,435.19 crore

During April 2022, coal production by CIL grew 27.6 per cent year-on-year (Y-o-Y) to 53.47 million tonnes (MT), while offtake rose 6 per cent to 57.50 MT during the same period. Coal despatch to the power sector by the PSU miner was also higher on an annual basis by 15.5 per cent at 49.72 MT last month.

Dues decline consistently

The FY22 fiscal year began with the power sector’s dues declining by 4 per cent to₹20,837.62 crore in April 2021 compared to March. In the entire FY22, the power sector dues have declined consistently.

The dues fell from the April 2021 numbers to ₹16,028.41 crore at the end of the first half of the fiscal year in September 2021. The dues at the end of October 2021 fell to ₹14,598.58 crore after which they rose to ₹15,243.36 crore  in November 2021. They declined further in December 2021 (₹15,088.42 crore), January 2022 (₹15,097.01 crore) and also in February 2022 (₹15,037.32 crore).

CIL monitoring dues status

Sources in the Coal Ministry said that the sales dues are continuously monitored by CIL and regular follow-ups are done with consumers for early recovery. The PSU has also developed an online bill-to-bill reconciliation portal through which online reconciliation will be carried out and dues will be monitored and realised in a better way.

CIL is also ensuring bilateral meetings to settle commercial disputes and has instructed coal companies that matters where commercial disputes cannot be settled bilaterally may be referred to Administrative Mechanism for Resolution of CPSE Disputes (AMRCD). The miner has already filed claims with AMRCD pertaining to different power plants and boards, he added