COVID-19 lockdown: Smooth supply of coal by CIL to gencos despite default in payments

State-owned Coal India has decided to provide smooth fuel supply to power generation companies without any restrictions despite default in payments by the state generation companies (gencos), in view of prevailing coronavirus situation in the country, an official said.

“As per contract provisions, gencos are required to make payment for the monthly supplies in three instalments. Despite continuing defaults in payments by the state gencos which are adversely affecting the cash flow of the coal companies and huge accumulation of dues (totalling about Rs 14,000 crore for CIL as a whole), smooth supplies are being ensured without any restrictive measures,” the official said.