Settlement of recent dues by state firms to Coal IndiaNSE -0.26 % Limited’s subsidiary Bharat Coking Coal Ltd has helped improve its financial position and ability to repay loans by the end of this fiscal year, company executives said. The company had borrowed Rs 160 crore from another Coal India subsidiary and taken bank loans of about Rs 350 crore last month to manage its flow of fund, a company executive said.
“West Bengal Power Development Corporation has settled a large part of its recent dues while Damodar Valley Corporation has paid portions of its outstanding, increasing fund inflow. These two constitute more than 80% of sales for the subsidiary,” he said. Another executive said other state firms had also started setting pending payments. “Dues, which had crossed Rs 3,000 crore in April, have remained at nearly the same level as payments started coming in,” an executive said.
