The central government is going to ask all states and power distribution companies to clear their dues to Coal India, which stands at a staggering ₹16,000 crore, power minister RK Singh said on Monday.
“States should understand that electricity is not free,” Singh told reporters on the sidelines of an event in the national capital. “Besides, central power generating companies (gencos) also have outstanding dues to Coal India. This is because states and discoms (distribution companies) do not pay the central gencos on time. The dues of all central gencos have spiralled up to ₹75,000 crore so far.”
The large outstanding is making it difficult for the state-owned miner to pay for freight and other related expenses, Singh said. “So, we are going to write to all states now, asking them to clear their dues,” the power minister said.
