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Power companies owe Rs 8,279 crore to Coal India

While state-run power producer NTPC owe around Rs 500 crore to CIL, DVC has an outstanding dues of around Rs 1,500 crore.

Mail Today Bureau | December 28, 2015 | Updated 11:10 IST
Power companies owe Rs 8,279 crore to Coal India
(Photo: Mail Today)

Power generation utilities like NTPC and Damodar Valley Corporation (DVC) owed about Rs 8,279.19 crore to Coal India Limited (CIL) as on November 30.

An official told news agency PTI that such power generation companies have an outstanding dues of Rs 8,279.19 crore to CIL as on November 30. While state-run power producer NTPC owe around Rs 500 crore to CIL, DVC has an outstanding dues of around Rs 1,500 crore, the official said.

Power companies of states like West Bengal, Chhattisgarh, Rajasthan and Madhya Pradesh also owe dues to CIL, the official added. An NTPC official said that it has not received any communication in this regard. NTPC's negligible amount may be due with Coal India, which is a routine matter, the official said.

State electricity distribution companies, which buy electricity from power PSUs like DVC, owe significant outstanding dues to power firms as discoms are facing tough financial conditions, a CIL official said. "So, this is can be seen as one of the reasons for the power generation firms owe huge dues to Coal India," the CIL official said.

In a bid to rescue almost bankrupt state electricity retailers, the Centre had last month approved a scheme to rejig Rs 4.3 lakh-crore debt of the utilities. The Union Cabinet had approved the scheme to ease the financial crunch of power distribution companies, or discoms, which has impaired their ability to buy electricity. The rescue plan, called Ujwal Discom Assurance Yojna, or Uday, aims at reviving ailing state electricity Boards and operational efficiencies of power distribution companies. It envisages to reduce interest burden, cost of power and aggregate technical and commercial losses. The scheme is optional and gets operationalised by signing a pact between states, state discoms and the Centre.

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