It is reported that Coal India Limited is planning to regulate supplies to 4 central and state run power utilities for non payment of coal dues, totaling INR 1,062.30 crores as on September 30th 2007. CIL’s total due from power units across India during this period is about INR 2,041 crores. As per report out of the power sector’s total outstanding of INR 2,041 crores, about INR 1,000 crores is disputed and CIL is asking the power utilities to at least pay the undisputed portion.
The report cited a highly placed CIL official as saying that “We are trying to bring these power utilities to terms in paying off our dues. If it is not done in appropriate time we will be left with no other option but to regulate supplies.”
The defaulting power utilities that risk supply regulation include
1) Madhya Pradesh Power Generating Company Limited
As on April 1st 2007, Madhya Pradesh power generation and distribution authority MPPGCL is the biggest defaulter with dues of around INR 491.96 crore. This is a rise of INR 125.76 crore from the earlier figure of INR 366.20 crore. CIL supplied 11.8 million tonnes of coal to MPPGCL during 2006-07.
2) National Thermal Power Corporation
NTPC has coal dues of INR 341.57 crore, an increase of INR 56.10 crore from the earlier INR 285.47 crore. CIL is currently holding hectic discussions with NTPC for release of at least a portion of the dues. CIL supplied NTPC around 99.29 million tonnes of coal in 2006-07.
3) Uttar Pradesh Rashtriya Vidyut Udyog Nigam Limited
As for the UPRVUNL, power dues till April 1st 2007 have gone up by INR 28.71 crore to touch INR 80.06 crore.
4) Tenughat Vidyut Nigam Limited
Tenughat with the lowest coal supplies of 1.75 million tonnes has accumulated dues of INR 148.71 crore.
The CIL figures, however, show that total dues from different sectors over the years have come down from INR 6,845 crores on March 31st 2001 to INR 3,997 crores on March 31st 2004 and INR 2,189 crores till April 1st 2007. Senior CIL officials pointed that defaults in the steel sector have also increased by INR 61.72 crore, from INR 251.15 crore to INR 312.87 crore. However, the fertilizer and cement sectors have made advance payments of INR 188 crore to avoid possible defaults.
