Millennium Post

Demonetisation: CIL extends last date for coal value payment

Coal India Limited has extended the last date for payment of coal value in view of problems faced by coal consumers due to demonetisation. 

Presently, the consumers are facing lack of cash.

According to Coal Consumers’ Association of India (CCAI), the in view of the temporary problems being faced by the consumers due to short-term disruption in cash, logistics, working capital on account of the demonetisation from November 8, The Coal India Limited has decided to extend the last date for payment of coal value for booking against Fuel Supply Agreement (FSA) or any e-auction schemes that is due. The payment of coal value is now extended up to December 10, 2016. 

It is however decided that the coal would be supplied only after receipt of coal value as per existing provisions.

Coal consumers had earlier requested the coal major to extend the date of submission of coal value for both FSA and e-auction customers by 15 working days, said the members of Coal Consumers’ Association of India (CCAI).

“The normal banking operations are interrupted due to excessive rush and certain operational hazards. This problem is coupled with restrictions on withdrawal leading to acute fund crunch in business,” said CCAI’s Secretary General Subhasri Chaudhuri.

However, Coal India Limited on Friday said 18 projects out of 30 approved are expected to contribute 116.98 million tonnes (mt) in the current fiscal. 

During the current fiscal, the coal production target has been pegged at 598.61 mt and coal production is expected to be 660.7 mt in 2017-18.

The organisation, which produces 84 per cent of the country’s coal production, produced 323.57 mt in April to November period achieving 90 per cent of the target. 

The organisation will showcase its corporate performance before the institutional investors at Roadshow to be held on December 5-6, 2016, at London and Edinburgh.
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