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The cumulative outstanding dues of Coal India (CIL) and Singareni Collieries Company (SCCL), which account for over 90 per cent of India’s coal production, fell by four per cent on a monthly basis to ₹21,133.43 crore in July this calendar year.
Dues payable by thermal power plants (TPPs) to CIL fell by two per cent M-o-M to ₹15,512.30 crore last month from ₹15,783.33 crore in June 2023.
The decline in outstanding dues of SCCL was steeper at 11 per cent on a monthly basis in July at ₹5,621.13 crore from ₹6,292.09 crore in June the year.
Dues mirror peak demand
FY24 began on a positive note for the two state-run coal miners as their total outstanding dues fell by 15 per cent M-o-M to ₹17,240.44 crore at the end of March 2023 compared to ₹20,343 crore at the end of February 2023.
The April-June quarter, which is also the peak coal demand season for the TPPs due to higher electricity consumption, witnessed an increase in the outstanding dues of the coal mining PSUs.
The dues of the Power sector rose in April, compared to March 2023, to ₹20,737.87 crore, which further went north to ₹21,797.92 crore in May and ₹22,075.44 crore in June 2023, before declining in July.
- Also Read: Coal India production up 13.4% in July
CIL’s outstanding dues after slipping to ₹13,915.04 crore in March 2023 began inching up during April and May to ₹16,012.28 crore and ₹16,330.15 crore, respectively, in line with rising demand for the key commodity.
The amount payable by the power sector to the mining behemoth fell in June to ₹15,783.33 crore and then further to ₹15,512.30 crore last month.
In the case of SCCL, after declining to ₹3,325.40 crore in March 2023, the monthly outstanding rose consistently for the next three months—from ₹4,725.59 crore in April to ₹5,467.77 care in May and ₹6,292.09 crore in June.
The outstanding dues of the Telangana-headquartered coal miner fell in July to ₹5,621.13 crore from the high witnessed in June, which is also the highest during FY24 as well as the current calendar year so far.
Rising production & dispatch
During the peak demand period of April-June, India’s overall coal production rose 8.40 per cent Y-o-Y to 222.93 million tonne (MT) compared to 205.65 MT in Q1 FY23, while coal dispatch rose 6.97 per cent Y-o-Y to 239.69 MT (Provisional) compared to 224.08 MT.
The cumulative coal production (up to July 23) rose to 292.12 MT (on a provisional basis) in FY24 compared to 265.94 MT during the same period in FY23 with a growth of 9.84 per cent, while dispatch rose 7.79 per cent Y-o-Y to 314.30 MT from 291.59 MT during the same period.
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