The outstanding dues of state-run Coal India (CIL) from the power sector rose by 13.4 per cent Y-o-Y to ₹13,915.04 crore at the end of March 2023 on a provisional basis.

Dues payable to the mining behemoth stood at ₹12,272.41 crore at the end of March 2022, which is also the lowest for the month since 2019.

However, on an M-o-M basis, the outstanding dues payable by the power sector to the country’s largest coal miner fell by 16.3 per cent in March this year.

The outstanding dues of Singareni Collieries Company (SCCL) fell 10.4 per cent M-o-M to ₹3,325.40 crore. Though March 2022 outstanding dues for SCCL are not available, at the end of January 2022, the dues stood at ₹5,620.35 crore.

Also read: Power producers owe ₹20,343 cr to coal mining PSUs as of February 2023

Cumulatively, the total outstanding dues of the two state-controlled coal miners fell by 15 per cent M-o-M to ₹17,240.44 crore at the end of March 2023.

The average cost of production of coal by CIL is ₹1,310.88 per tonne. The lowest dues in the past several years were recorded at the end of March 2019 at ₹8,435.19 crore.

Production and despatch

India’s overall coal production rose a healthy 14.7 per cent Y-o-Y to 892.74 million tonnes (MT) in FY23. The output from CIL rose 12.9 per cent Y-o-Y to 703.22 MT during the same period.

Despatch of the key commodity during FY23 grew by 7 per cent to 877.45 MT, while CIL’s despatch was up almost 5 per cent Y-o-Y to 694.70 MT.

Despatch of the dry fuel to the power sector grew by more than 9 per cent Y-o-Y to 737.93 MT.

Average railway rake loading fell marginally on an annual basis to 294 rakes per day in March 2023. A rake typically can carry up to 4,000 tonnes of coal. However, rakes for the power sector were higher marginally Y-o-Y to 271.20 rakes a day.

Coal-based power generation grew 5.70 per cent Y-o-Y in March 2023, while the overall power generation during the month was 4.59 per cent higher on an annual basis. India’s total power generation increased in March 2023 to 139.72 billion units (BU) registering a Y-o-Y growth of 9.13 per cent.

Also read: Power demand rose 11% Y-o-Y, coal output grew at over 15% in FY23

The Coal Ministry has initiated several steps to ramp up domestic production in the country in order to achieve self-reliance. Some of the major initiatives include a single window clearance and the amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50 per cent of their annual production after meeting the requirement of the end use plants.

Other measures include production through mine developer & operator (MDO) mode, increasing use of mass production technologies, new projects and expansion of existing projects, and auction of coal blocks to private companies/ PSUs.

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