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CIL BCCL Struggling to Pay Salaries - Report

Coal News - Published on Tue, 19 May 2020

Image Source: CIL BCCL Coronavirus Lockdown
PTI reported that as Coal India’s arm Bharat Coking Coal is struggling for fund salaries to its 42,000 employees due to non-payment from customers in the last few weeks, All India Association of Coal Executives in a letter dated May 17, 2020 to Coal Minister Pralhad Joshi said “Under the circumstances, it is requested to help create a sustainable recovery method so that the central government finds itself in a position to help these affected PSUs to come out of woods, the association said seeking a suitable package for BCCL’s recovery.”

AIACE said “As per rough estimates, , Bharat Coking Coal Ltd usually receives around INR 1,000 crore from consumers every month. Out of this, INR 450 crore is spent on salaries and another INR 450 crore on levies and input costs. The total dues from power companies have crossed INR 3,200 crore, one of the highest among subsidiaries, due to liquidity crisis faced by electricity generators during the lockdown. The entire working capital has been spent on producing and supplying coal to state-owned customers on credit.”

In March, the company managed to pay salaries and continued production in April by raising finances against its bank fixed deposits, the limit for which has been exhausted.

Its major customers refused to settle past dues, citing tight liquidity position. Power companies are also not acknowledging invoices raised recently, as executives are unavailable due to the lockdown this is acting as an impediment to raising additional working capital through invoice discounting from banks.

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Posted By : Yogender Pancholi on Tue, 19 May 2020
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