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WBPDCL not paying, says ECL

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BS Reporter Kolkata
Last Updated : Jan 29 2013 | 2:34 AM IST

As an interesting twist to the recent reports of coal shortage ailing power utilities in the state, Coal India subsidiary Eastern Coalfields Ltd (ECL) alleged here that it had outstanding dues of around Rs 104 crore from the utilities under West Bengal Power Development Corporation Ltd (WBPDCL).

ECL claimed that it had supplied coal more than the link quantity to utilities under WBPDCL during the month of September.

Kolaghat Thermal Power station received 47,900 tons against a link quantity of 30,600 tons. Similarly, Bakreswar, Bandel and Sagardihi power stations received 1,36400 tons,47,900 tons and 99,600 tons respecively, all above link quantities.

The only exception was Santhaldihi that received 56 per cent of the link quantity.

After WBPDCL settled dues worth Rs15 crore with ECL today, the net undisputed dues stood at Rs49 crore. WBPDCL had put Rs 55 crore under disputed payment category.

ECL was supplying 5 rakes per month to these utilities.

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While the coal company's production was up by 18 per cent during the first half of the year at 128 lakh tons, its expenses were also up by Rs 18 crore per month on account of higher salary payments, said a top placed source in ECL on condition of anonymity.

The increased income on account of higher production of around Rs 20 crore per month was offset due to rising expenses.

"Outstanding dues could have a serious impact on the financials of a sick company like ECL that was placed the Board of Industrial and Financial Reconstruction", said the source.

ECL had to foot a salary bill of around Rs200 crore per month for its close to one lakh employees.

In most cases payments were deferred.

The company was finding it hard to pay for the diesel, coal transportation charges as well as cost of explosives.

"The working capital cycle is affected. While ECL is still hopeful of meeting its annual production target of 31 million tons, in case of further delay in payment from power utilities, the production could be hit", the source admitted.

He pointed out at the same time that power utilities like the National Thermal Power Corporation(NTPC), CESC and Durgapur Power Ltd (DPL) made payments on time.

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First Published: Oct 24 2008 | 12:00 AM IST

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