The end of monopoly as proposed by the government in an ‘Atmanirbhar Bharat’ would be the least of Coal India’s troubles these days.
Besieged by falling demand and impending liberalisation of coal mining sector, country’s near-monopoly state-owned entity is faced with a unique problem never imagined in recent memory.
Its cash in hand is being depleted fast due to an unfavourable cash flow situation due to mounting outstanding from customers, mainly the state-owned power generating companies.
The crisis has reached such a level that Coal India’s top brass is even thinking of short term borrowings to tide over the crisis temporarily.
Depleting cash balance and mounting dues
From ₹18,000 crore in FY13 to ₹253 crore in FY19, Coal India’s cash and cash equivalents have been coming down every year and the current year would be tougher with rising receivables.
During a comparable period between FY12 to now, Coal India’s dues from coal sales reportedly rose from ₹7,400 crore to ₹17,000 crore.
The dues were little above ₹12,000 crore in January but since have risen sharply following the lockdown, sources said.
Among the subsidiaries, Bharat Coking Coal Ltd, Central Coalfields Ltd and South Eastern Coalfields are particularly in trouble having reportedly been forced to prematurely withdraw fixed deposits.
Crisis at Bharat Coking Coal
The crisis is most severe in Bharat Coking Coal, a subsidiary of Coal India.
هذه القصة مأخوذة من طبعة June 2020 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة June 2020 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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