Categories: Business

coal india dues from state power companies mount to 22000 crore

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Coal India

new Delhi. Central India's coal producing company Coal India's arrears on public sector power generating companies reached Rs 22,000 crore. Sources said on Monday that Coal India is not even in a position to control the supply of coal to power companies at this time as demand has remained weak for the past few months. Company sources told PTI-language, "The arrears have gone up to Rs 22,000 crore. We do not know when the situation will improve. Financial assistance is yet to come from the government to the power generating companies. ”Earlier, the arrears in January were around Rs 12,000 crore. The source said, "Most of the outstanding amount belongs to the government power generating companies and rationalizing the supply to pressure them is not practical."

The government has recently announced a loan of Rs 90,000 crore for public sector power distribution companies. The net cash flow from operating activities of Coal India declined to Rs 4,146 crore in the last financial year from Rs 16,355 crore in 2018-19. Meanwhile, brokerage house Motilal Oswal said in a note, "Government power generating companies are not in a position to pay. The situation is not going to improve before September ”

"The cash flow problem is serious in subsidiaries like Bharat Coking Coal, Western Coalfields and Central Coalfields," an official said. Due to low income, they are struggling with cash problem in cases like payment of salaries of employees. "Another official said that low income is a serious issue for some subsidiaries. The units have been asked to work through short-term loans from banks. Coal India has no plans to take long-term loans through the medium of bonds to overcome this crisis. According to officials, the 'lockdown' for the prevention of Corona virus epidemic came at a time when electricity demand was low and production was increased in the mines of Coal India. This has increased the stock of goods. Coal India's supply to the power sector declined 24 per cent year-on-year to 6.2 million tonnes in April-May.

This post was published on July 13, 2020 6:16 pm

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