CIL to act against power utilities not paying bills

Coal India Ltd (CIL) is planning to regulate supplies to four central and state-run power utilities for non-payment of coal dues, totalling Rs 1,062.30 crore till September 30. Its total dues from power units across the country during this period is about Rs 2,041 crore.

The defaulting power utilities that risk supply regulation are National Thermal Power Corporation (NTPC), Madhya Pradesh Power Generating Company Ltd (MPPGCL), Uttar Pradesh Rashtriya Vidyut Udyog Nigam Ltd (UPRVUNL) and Tenughat Vidyut Nigam Ltd (TVNL).

CIL sources said that though coal-supply dues to the power, steel, fertiliser and cement sectors till September 2007 had come down by Rs 24 crore to touch Rs 2,165 crore, power continued to take up a major portion of the outstanding dues and "therefore needs to be handled expeditiously".

A highly-placed CIL official said, "We are trying to bring these power utilities to terms in paying off our dues. If it is not done in appropriate time we will be left with no other option but to regulate supplies."

According to the latest figures available with CIL, as on April 1, 2007, Madhya Pradesh power generation and distribution authority MPPGCL is the biggest defaulter with dues of around Rs 491.96 crore. This is a rise of Rs 125.76 crore from the earlier figure of Rs 366.20 crore. CIL supplied 11.8 million tonnes of coal to MPPGCL during 2006-07.

Similarly, NTPC, the largest public sector power utility in the country, has coal dues of Rs 341.57 crore, an increase of Rs 56.10 crore from the earlier Rs 285.47 crore. CIL is currently holding hectic discussions with NTPC for release of at least a portion of the dues. CIL supplied NTPC around 99.29 million tonnes of coal last year.

As for the UPRVUNL, power dues till April 1, 2007 have gone up by Rs 28.71 crore to touch Rs 80.06 crore.

Among the four major defaulting power units, Tenughat with the lowest coal supplies of 1.75 million tonnes has accumulated dues of Rs 148.71 crore.

Senior CIL officials pointed that defaults in the steel sector have also increased by Rs 61.72 crore, from Rs 251.15 crore to Rs 312.87 crore. However, the fertiliser and cement sectors have made advance payments of Rs 188 crore to avoid possible defaults.

"Of the power sector's total outstanding of Rs 2,041 crore, about Rs 1,000 crore is disputed. We are asking the power utilities to at least pay the undisputed portion," a senior official said.

The possibilities of a future third-party intervention in aiding CIL get hold of the undisputed portion from the power utilities is also being looked into.

The CIL figures, however, show that total dues from different sectors over the years have come down from Rs 6,845 crore on March 31, 2001, to Rs 3,997 crore on March 31, 2004 and Rs 2,189 crore till April 1, 2007.