India's power sector owes coal mining PSUs Rs 20,342 crore

India's power sector owes coal mining public sector undertakings (PSUs) Rs 20,342.56 crore in outstanding dues, according to the country's Union Minister for Coal, Mines and Parliamentary Affairs, Pralhad Joshi.

The outstanding dues to Coal India Limited (CIL) have increased by 25% to Rs 16,629.41 crore from Rs 13,335.91 crore in March 2022. Meanwhile, dues to Singareni Collieries Limited (SCCL) have decreased by Rs 2,042.35 crore to Rs 3,713.15 crore.

The timely payment of dues to the coal sector is crucial to ensure a constant supply of the fuel to thermal power plants. Last year, the country faced a power crisis due to a coal shortage.

The senior power ministry official warns that the lack of payment discipline causes supply-side problems in generating electricity, and it also negatively affects new investments in the sector.

The outstanding dues of the power sector to coal mining PSUs have increased by nearly 5% to Rs 20,342.56 crore in February this year from Rs 19,091.41 crore in March last year.

The government is constantly monitoring sales dues and holding bilateral meetings with consumers to settle commercial disputes, with several claims already filed with the Administrative Mechanism for Resolution of CPSE Disputes (AMRCD) regarding different power plants and boards.

Joshi said the government's focus is on increasing domestic coal production and reducing non-essential coal imports.

The country has produced about 785.24 million tonnes (MT) of coal up to February 2023, compared to about 681.98 MT during the same period last year, an increase of about 15.14%. Most of the country's coal requirements are met through indigenous production supply, with total imports up to December 2022 amounting to 186.06 MT.