Parliamentary Panel asks coal PSUs to recover dues worth Rs 13,745 cr

Parliamentary Standing Committee on Coal and Steel has commended the work done on rationalisation of coal linkages, which helped in savings worth Rs 1,371 cr

A Parliamentary panel has raised concerns over Rs 13,745 crore in dues to coal PSUs - CIL, SCCL and NLC - and asked them to recover the amount, which can adversely impact their financial position.

The Parliamentary Standing Committee on Coal and Steel, chaired by Rakesh Singh, commended the work done on rationalisation of coal linkages, which helped in savings worth Rs 1,371 crore.

"The committee is concerned to note that large amount of outstanding dues of all coal Public Sector Undertakings (PUSs) — CIL, SCCL and NLC — remain unrealised from concerned ministries/parties," the report said.

As on March 31, 2015, outstanding dues of Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) and NLC India Ltd (NLC) stood at Rs 11,032.20 crore, Rs 2,441.32 crore and Rs 272.04 crore (including disputed dues of Rs 129.09 crore), respectively, it added.

 

Coal Ministry informed the panel that it has taken a slew of measures for regular follow-up to realise outstanding dues.

It includes review of party-wise dues by General Manager and Chairman CIL with Chairman/Managing Director of defaulting power houses/parties, which are then taken up to the level of Chief Secretary of concerned state and Secretary (Energy) of respective defaulting organisation, the report added.

"The committee further emphasise that the Ministry/Coal PSUs should take elaborate steps for recovery of these outstanding dues lest these insurmountable dues adversely affect the financial position of the coal companies," it said.

The panel commended the ministry on the transparent auction of coal linkages, which will create a level playing field for all market participants.

"The committee are happy to note that as a result of review by an Inter-Ministerial Task Force to rationalise coal linkages, overall movement rationalisation of 29.5 million tonnes of coal has taken place with potential annual savings of Rs 1,371 crore of transportation coast," it said.

Other steps include automatic transfer of coal linkage granted to old plants, while scrapping and replacing them with new plants; opening two separate eAuction windows exclusively for power sector and a separate for non-power sector for quantity of 4 million tonnes, it added.

"The committee hope that these initiatives fructify into tangible schemes towards a more fair and transparent system of Coal marketing and Distribution," it noted.