The sales dues of India’s largest power utility NTPC to Coal India’s biggest subsidiary South Eastern Coalfields Limited (SECL) doubled between March and November last year.
According to the information provided by the SECL to the Parliamentary Standing Committee on Coal and Steel, the outstanding coal sales dues of the NTPC increased from Rs 650.3 crore in March, 2016 to Rs 1,126.92 crore in November, 2016. The information was given to the Standing Committee when it last met on December 29 in Raipur.
The coal sales dues of Maharasthra State Power Generation Company Limited (MSPGCL) to SECL has also doubled in these 8 months – from Rs 176.83 crore in March, 2016 to Rs 353.7 crore in November, 2016. NTPC, SECL and MSPGCL did not respond the queries sent by The Indian Express.
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“The undisputed dues are being recovered through vigorous follow-up with such consumers. Meetings between officials of SECL are also organised at different levels to thrash out issues if any to facilitate liquidation of outstanding dues. With regular persuasion with the companies, particularly STATEGENCOS (state power generation companies), SECL has been able to reduce the outstanding dues from Rs 2,907.33 crore as on April 1, 2016 to Rs 2,706.86 crore as on November 30, 2016,” the SECL stated in a written reply to a query that came from a member of the Committee.
The SECL provided a detailed data about its outstanding dues to the Committee. The firm told the Committee that the power sector dues decreased marginally from Rs 2824.23 in March, 2016 to Rs 2762.12 crore. In the same time period, the steel sector dues to SECL decreased from Rs 12.53 crore to Rs 1.92 crore.
“Distribution companies of various states have not been paying power generating companies like NTPC on time as most of them are financially sick. Consequently, the NTPC and others are unable to pay SECL on time when they purchase coal,” said a coal sector expert on the condition of anonymity.
Sales dues of Karnataka Power Corporation Limited to SECL was zero at the end of March 2016, but by the end of November, the KPCL had the dues of Rs 79.28 crore. The dues of Chhattisgarh State Power Generation Company rose marginally from Rs 437.13 crore in March, 2016 to Rs 438.55 crore in November, 2016. Both the firms did not respond to the queries of The Indian Express.