This is an archive article published on October 12, 2021
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Clear dues to coal cos: Govt to four states with low stock, high thermal capacities

The outstanding dues of the Maharashtra state utility to Coal India were Rs 3,176.1 crore at the end of FY21, while the dues of Uttar Pradesh utility were Rs 2743.1 crore. Dues of the Tamil Nadu state utility were Rs 1,281.7 crore, and that of the Rajasthan state utility were Rs 774 crore.

Thermal power plants across the nation are currently facing a shortage of coal due to a sharp uptick in power demand, restricted supplies due to heavy rainfall in September, low accumulation of stock in April-June, and a huge spike in the price of imported coal.Thermal power plants across the nation are currently facing a shortage of coal due to a sharp uptick in power demand, restricted supplies due to heavy rainfall in September, low accumulation of stock in April-June, and a huge spike in the price of imported coal.
Written by: Karunjit Singh
3 min readNew DelhiOct 12, 2021 07:37 AM IST First published on: Oct 12, 2021 at 04:15 AM IST

High overdue payments to coal companies by certain states have contributed to the low levels of coal stocks at thermal power plants, as per government officials. The Power Ministry has written to four states — Maharashtra, Uttar Pradesh, Tamil Nadu and Rajasthan — asking them to clear dues to coal companies.

The outstanding dues of the Maharashtra state utility to Coal India were Rs 3,176.1 crore at the end of FY21, while the dues of Uttar Pradesh utility were Rs 2743.1 crore. Dues of the Tamil Nadu state utility were Rs 1,281.7 crore, and that of the Rajasthan state utility were Rs 774 crore.

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These states have among the highest thermal capacities that have either zero days of stock or just one day of stock as on October 10. Outstanding dues of state electricity boards and power generation companies to Coal India Ltd, which accounts for about 80 per cent of India’s coal output, were Rs 21,619.7 crore at the end of FY21. “The Power Ministry has written to these states (about high dues to coal companies). While this is not the only reason behind the coal situation, this is a contributing factor,” said a government official who did not wish to be quoted.

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