Power companies owe CIL Rs 10,967 cr

For CIL, this is enough money to produce 68 million tonne coal annually

A total of 44 power firms in the country owe Coal India Ltd (CIL) a staggering Rs 10,967 crore. For CIL, this money is enough to produce 68 million tonnes (mt) of coal this financial year, a half of the country’s annual imports.

As on April 30, overall dues to CIL stood at Rs 9,024 crore. Last month, Coal Secretary S K Srivastava had written to Power Secretary P K Sinha on the issue of the rise in dues. This was followed by the coal and power ministers discussing the matter, said a source close to the development.

As on June 30, power generator NTPC alone accounted for Rs 4,107 crore, or 37 per cent, of the dues, according to the coal ministry. While Damodar Valley Corporation owes CIL Rs 1,084 crore, the West Bengal Power Development Corporation is yet to pay dues of Rs 1,695 crore to the miner.

In April, NTPC had refused to recognise CIL dues, arguing it had already paid for the quality of coal it received. The cause of the dispute was a change in the coal grading and pricing methodology from the useful heat value to the gross calorific value system.

A senior NTPC executive said the issue over coal quality was being resolved with the appointment of an independent third-party to monitor sample testing at loading and unloading points. Last month, in a letter to the coal ministry, the power ministry had suggested an independent agency such as the Central Fuel Research Institute be selected for third-party sampling.

The power ministry’s suggestion came in the wake of the Central Electricity Authority receiving several representations from power utilities regarding grade slippages due to an improper sampling procedure adopted by coal companies that resulted in a steep rise in power rates.