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Mounting Debt of Power Plants Hits Cash Flow of CIL

Coal News - Published on Tue, 14 Jul 2020

Image Source: CIL Coronavirus COVID19
PTI reported that Coal India Limited’s dues from state owned power generation companies have risen to INR 22,000 crore amid muted demand and high production. A company source told PTI "Dues are now at INR 22,000 crore. We are not sure when the situation will improve, and are yet to see the flow of government funds as assistance to gencos. Majority of the dues are from state gencos and rationalisation of supply to put pressure on them is also not feasible. The problem of cash flow is severe with some of the subsidiaries like Bharat Coking Coal, Western Coalfields and Central Coalfields. They are facing a liquidity crunch to fulfil their statutory obligations like payment of salaries in the wake of low realisations."

The outstanding amount was around INR 12,000 crore in January. Net cash flow from operating activities for Coal India slumped sharply to INR 4,146 crore in the last fiscal from INR 16,355 crore in 2018-19,

Another official said low realisation is a critical issue for some subsidiaries but the problem is short lived as subsidiaries had been asked to rely on short-term loans from banks.

Coal India's supplies to the power sector in April-May declined 24 per cent on-year to 62 million tonnes.

Source :

Posted By : Yogender Pancholi on Tue, 14 Jul 2020
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