SEBs and state-run gencos owe ₹21,619.71 crore in outstanding dues to CIL

New Delhi: State Electricity Boards (SEBs) and state-run power generation companies owe ₹21,619.71 crore to State-run Coal India Ltd (CIL), coal, mines and parliamentary affairs minister Pralhad Joshi said in a reply in Lok Sabha on Wednesday.

This assumes significance given that India’s power sector is the largest consumer of coal in the country, with CIL being the largest coal miner. Coal fuelled electricity generation remains the mainstay of India’ power mix, accounting for 53% or 202.67 GW of India’s installed power generation capacity of 383.37 gigawatts (GW).

“Outstanding dues of CIL from power sector stood at ₹16,209.02 crore as on 31.03.2020 and ₹21,619.71 crore as on 31.03.2021,” the reply said.

The demand from the power sector for the current fiscal is expected to account for around 545 MT of CIL’ coal production target of 670 MT. India’s overall coal requirement is expected to go up to 1,123 MT by 2023 from the present level of 700 MT.

“CIL and Coal companies are also ensuring bilateral meetings to settle commercial disputes and matters, where commercial disputes cannot be settled bilaterally, are also referred to Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD). Fuel Supply Agreement also provides for levy of interest on delayed payment and coal companies are claiming interest on delayed payment from consumers,” the reply said.

This comes in the backdrop of CIL registering a 28.4% growth in coal offtake for the first four months of the current fiscal as compared to the same period last fiscal, on account of higher fuel demand from the power sector.

“The amount due from Central and State Gencos for CIL is also followed up by the Ministry of Coal,” the reply added.

This comes at a time when the discom's financial health has been improving. The narrowing of India’s gap between the cost of electricity bought (average cost of supply, or ACS) and supplied (average realizable revenue, or ARR) to 28 paise per unit in 2019-20, led to a fall in discom losses by more than a third to ₹38,000 crore in current fiscal as against ₹61,360 crore in FY19.