Facing extreme liquidity crunch, independent electricity generators are seeking supply credit from Coal India Ltd (CIL) for lifting the fuel from the pits to run power plants. In separate letters sent to the ministries of power, coal and the Prime Minister\u2019s office, the Association of Power Producers has asked the government to direct CIL to allow coal supply on credit, which would lower the burden of additional working capital loans on private power plants.<\/p>\n
\u201cCIL\u2019s reluctance to extend credit terms is inexplicable as it actually makes a good business case for them \u2013 being a \u2018AAA\u2019 rated entity, they can arrange for credit at very competitive rates and pass it on to the generators on back-to-back basis with maybe a little extra transactional charge,\u201d the letters, reviewed by FE, from power producers argued.
\nAmid the lockdown to contain the outbreak of the coronavirus, discoms are facing revenue shortage with rising difficulties in meter reading exercises and payment collection. This, in turn, is raising the risks of under-paying power generators. Overdues\u2014payment default of 60 days or more\u2014from discoms to power producers were already at Rs 80,387 crore at February-end.<\/p>\n","protected":false},"excerpt":{"rendered":"
Facing extreme liquidity crunch, independent electricity generators are seeking supply credit from Coal India Ltd (CIL) for lifting the fuel from the pits to run power plants. In separate letters sent to the ministries of power, coal and the Prime Minister\u2019s office, the Association of Power Producers has asked the government to direct CIL to allow coal supply on credit, which would lower the burden of additional working capital loans on private power plants. \u201cCIL\u2019s reluctance to extend credit terms is inexplicable as it actually makes a good business case for them \u2013 being a \u2018AAA\u2019 rated entity, they can […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[198,130,138],"tags":[],"class_list":["post-347177","post","type-post","status-publish","format-standard","hentry","category-coal-the-financial-express","category-newspapers","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/347177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=347177"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/347177\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=347177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=347177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=347177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}