CIL maintains supplies amid defaults by gencos

    Kolkata, Apr 6 (PTI) Despite default by some
generating companies, Coal India has maintained supplies due
to COVID-19 pandemic and the nationwide lockdown, an official
said on Monday.
    The countrys largest miner has also extended the time
limit for payment of coal, booked by its customers, by two
more weeks till April 21 from April 7 announced earlier.
    The long pending demand of Usance LC is now
implemented as an additional mode of payment along with
Irrevocable Revolving Letters of Credit (IRLC) for the coal
supplied to power producers, especially independent power
plants.
    This will help the cash strapped power producers avail
credit facility through their banks to tackle liquidity
crunch.
    "There had been defaults by both central and states
generating companies as they are not getting paid by
distribution companies and even so we are maintaining
supplies and relaxing other terms," a senior coal India
official told PTI.
    Immediately, details of dues cannot be acertained,
officials said.
    CIL has also extended the validity period for lifting
of coal under all auctions without any penalty. Earlier,
failure to lift the ordered quantity of coal within a
stipulated time period attracted forfeiture of earnest money
deposit under auction schemes.
    Now, this clause has been done away with till the
closure of lockdown period to non-regulated sector as well.
    The move comes amid a slew of measures that the
Maharatna coal major has introduced to lessen the burden of
its customers in the ongoing lockdown phase.
    Coal India is encouraging power companies importing
coal to substitute their requirement of imported coal with
domestic fuel.
    Coal stocks in the country now stand at 120 Million
Tonnes (MTs) with pitheads of CIL heaped high close to 75 MTs.
The rest 45 MTs of coal stock is at thermal power plants
sufficient for 28 days consumption. PTI BSM
RG RG

(This story has not been edited by THE WEEK and is auto-generated from PTI)