Outstanding dues of States to Generating Companies have nearly halved from 1,20,540 crore – EQ Mag

Distribution companies are also paying their current dues in time: Shri R. K. Singh, Union Power & NRE Minister

Some State Gencos have sought working capital assistance from PFC and REC for procurement of coal pending realization of their dues: Shri R. K. Singh, Union Power & NRE Minister

There has been significant improvement in realization of dues of Generating Companies post implementation of Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 promulgated on 3rd June, 2022. The total outstanding dues of States towards Generating Companies reported on PRAAPTI Portal which were at Rs. 1,20,540 Cr. as on 03.06.2022 have been reduced to Rs. 61,025 Cr. as on 24.07.2023 with timely payment of twelve (12) Equated Monthly Installments (EMIs). Distribution companies are also paying their current dues in time to avoid regulations under the rule. However, some State Gencos have sought working capital assistance from PFC and REC for procurement of coal pending realization of their dues.

Various state utilities are approaching Rural Electrification Corporation Limited (REC) to sanction the loans. REC has provided loan assistance to various utilities for procurement of coal. The details are at Annexure-I.

Also, Power Finance Corporation Ltd. (PFC) has a policy in place which prescribes sanction of short term loans to state power plants requiring working capital to buy coal subject to compliance of Additional Prudential Norms prescribed by Ministry of Power. During FY 2022-23 and FY 2023-24, PFC had sanctioned loans to various State Sector Gencos for procurement of coal. The details are at Annexure-II.

As on 31.03.2023, the coal stock available at 180 Domestic coal based (DCB) plants was 34.6 Million Ton (MT), while on 17.7.2023, it was 33.4 MT which is sufficient to run these plants for an average of 13 days at 85% Plant Load Factor (PLF). Further, the coal stock at 57 State Sector Plants as on 17.07.2023 is 9.6 MT, which is sufficient to run these plants for an average of 10 days at 85% PLF. So, there is no shortage of coal in State Sector Plants. However, coal stock at the plant end varies as per gap between consumption and receipt of coal.

Government has taken following steps to ensure smooth coal supply to power plants for unhindered power generation:-

• To address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants.
  An inter-ministerial Secretary-level meeting is held regularly to monitor coal stocks.
• Government has issued revised coal stocking norms, which mandates the power plants to maintain sufficient stock at all times to meet any contingent situation.
• Power Utilities have been importing coal considering their requirement as well as cost-economics. Ministry of Power vide order dated 09.01.2023 directed Central/State Gencos and IPPs to take necessary actions to import coal for blending where necessary through a transparent competitive procurement so as to have sufficient stock at their power plants for smooth operations till September, 2023.
• As per Railways, during 2022-23, the net induction of coal carrying wagons was about 8800 (about 150 rakes). During 2023-24, the likely net induction of coal carrying rakes would be about 200 rakes, which could provide additional 50 rakes/day for coal loading. The expected increase in annual coal transportation capacity on account of wagon induction would be about 70 Million Tonnes (MT). Similarly, likely net induction of coal carrying rakes in 2024-25 is about 250 rakes, which could provide additional 60 rakes/day. The expected increase in annual coal transportation capacity on account of wagon induction would be about 85 MT.
• Railways have identified 40 number of project for augmentation of coal evacuation. Out of 40 projects, 17 number of projects have already been completed and 23 projects are in progress. Out of 23 projects, it is expected that about 18 projects would be completed by 2026-27.
• According to Railways, likely increase in coal transportation capacity during 2023-24 and 2024-25 is about 185 MT.
  To ensure sufficient coal, Captive Coal Mine Production target for Financial Year 2023-24 is kept at 141 Million Tonnes in comparison to 102.69 MT for previous FY 2022-23.

The Plant Load Factor (PLF) of Coal/Lignite based power plants of capacity 25 Mega Watt (MW) and above during the year 2022-23 was 64.15%. In 2023-24, the demand for electricity has increased and power plants are generating the electricity as per schedule given to them. The PLF for Coal/Lignite based power plants in FY 2023-24 (up to June 2023) is around 70.02%.

ANNEXURE-I

Loans Sanctioned by REC for procurement of Coal

ANNEXURE-II

Loans Sanctioned by PFC for procurement of coal

This information was given by The Union Minister of New Renewable Energy & Power Sh. R. K. Singh in Lok Sabha in a written reply today.