CIL hopeful of recovering Rs 2000 crore NTPC dues

Coal India is hopeful of recovering dues of around Rs 2,000 crore from NTPC and remains upbeat on an amicable solution to quality issues -- a major hurdle for signing fuel supply agreement with the power major.

"The total dues will be close to Rs 2,000 crore accumulated to Eastern Coalfields and Northern Coalfields. We hope to recover the dues," Coal India Ltd Chairman S Narsing Rao told reporters here today.

He said had CIL not been a large organisation the company would have collapsed with such large dues.

The dues have accumulated for 2012-13 fiscal after NTPC made payments for the coal purchase making deduction according to their internal calculations and which is grossly contested by CIL.

ECL officials had said NTPC had made payments of Rs 150 crore against their dues of Rs 1,000 crore.

ECL had stopped coal supply to NTPC from January 1 but later agreed to joint sampling and resumed supply.

"Now the supply is 60-70%," Rao said.

ECL coal is largely meant for Farakka in West Bengal and Kahelgaon in Bihar.

Asked about concrete steps taken on checking coal quality, Rao said engaging third party independent quality organisation has already been initiated and by August- September this year it would be implemented.

Rao said FSA was modified recently and the upper cap for deduction of quantity of stone from the coal supplied was removed.

"We are confident of our quality so we have removed the cap which was in the FSA," Rao said.