Demonetisation: Coal India extends last date for submitting coal value

Coal India Ltd has extended the last date for payment of coal value in view of "temporary problems" faced by coal consumers due to "short-run disruption in cash" resulting from demonetisation.

"In view of the temporary problems being faced by our customers due to short-term disruption in cash logistics/working capital on account of the demonetisation decision taken by the Government of India on 08.11.206, it has been decided that the last date for payment of coal value for booking against FSA (Fuel Supply Agreement) or any e-auctions schemes that is due on or after 18.11.2016 and till 09.12.2016 is now extended up to 10.12.2016," a CIL notice said.

The miner, however, said coal would be supplied only after receipt of coal value as per extant provisions.

Coal consumers had requested the coal major to extend the date of submission of coal value for both FSA and e-auction customers by 15 working days, said an official of Coal Consumers' Association of India (CCAI).

"Consequent to the new government policy, normal banking operations are interrupted due to excessive rush and certain operational hazards. This problem is coupled with restrictions on withdrawal leading to acute fund crunch in business," said CCAI's Secretary General Subhasri Chaudhuri.

--IANS

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