Power firms’ dues to CIL rise Rs 2,000 crore in 15 days
KOLKATA: Coal IndiaNSE 3.22 %’s dues from the power sector increased almost Rs 2,000 crore in the first two weeks of April to cross Rs 15,000 crore for the first time as generators are unable to pay, which will make the state firm’s cash flow negative if the situation does not change.
“Providing for working capital from internal resources may be difficult. Coal India is a zero-debt company, however, we will have to borrow funds from the market thereby increasing production cost if dues continue to mount,” a Coal India executive told ET.
He said dues of Rs 2,000 crore in 15 days were unprecedented. Almost 80% of the company’s output goes to power plants, and the biggest dues were from state-owned power firms in West Bengal, Tamil Nadu and Uttar Pradesh.
