CIL regulates coal supply to SEBs
In view of non-payment of dues amounting to a whopping Rs 3,489 crores, Coal India Limited has begun regulating coal supply to various state electricity boards and other power utilities and asked them to furnish Letter of Credit (LC) to ensure uni...
By PTI |
NEW DELHI: In view of non-payment of dues amounting to a whopping Rs 3,489 crores, Coal India Limited has begun regulating coal supply to various state electricity boards and other power utilities and asked them to furnish Letter of Credit (LC) to ensure uninterrupted supply.
After failing to secure the dues, Eastern Coalfields Ltd has started regulating coal supply to the Bihar Electricity Board while the Central Coalfields Ltd is rationing supplies to the Jharkhand Electricity Board and the Tenughat Vidyut Nigam Ltd.
The Southeastern Coalfields Limited is also regulating supply to the Rajasthan Vidyut Nigam Ltd. ECL, CCL and SECL function under the aegis of the CIL. In a note, the CIL informed the government that the supply has been regulated to these boards as per a provision under the securitisation scheme.
The public sector behemoth has also begun seeking irrevocable LC from SEBs to ensure uninterrupted availability of coal supply. It said while some Boards have opened LC, others were being pursued to do so.
The scheme has provision of payment of interest at the rate of 15 per cent on the due amount if payments were not made within the stipulated period. Of the total outstanding dues, Rs 1,596.81 was disputed by the SEBs, it said.
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CIL argued that dues increased due to financial crunch of the SEBs and other power utilities and considerable time consumed by the government appointed umpires in settling payment disputes. CIL cited that the National Thermal Power Corporation's Badarpur power station was yet to pay dues worth Rs 428.82 crores despite the umpire's ruling to this effect.Besides payment dispute exist between ECL, NCL and the Badarpur Power Station and between the coal companies and Punjab and Gujarat electricity boards.
After bifurcation of Madhya Pradesh Electricity Boards and the Chhattisgarh Electricity Board, the former is yet to pay as their liability amounting to Rs 354.16 crores has not yet been finalised, the note said. Similarly after bifurcation of Bihar and Jharkhand electricity boards, the non-reconciliation of dues amount to Rs 184.78 crores.
The Committee on Public Undertakings in its report too observed that there was no effective mechanism available with the coal companies for recovery of their outstanding dues from these boards and constitution of an effective mechanism involving ministries of coal and power and the states to look into the issue.
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It also suggested that it should be made madatory for all SEBs to open LC for availing supply of coal from the PSUs.Start a SIP with as low as ₹500 with ET Money App!
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