More time for coal payment

A Staff Reporter

Calcutta, Dec. 2: Coal India (CIL) has extended the last date of payment for its consumers who source coal both under the fuel supply agreement and the electronic auction route in the wake of the government's decision to scrap Rs 500 and Rs 1,000 notes last month. "In view of the temporary problems being faced by our customers because of short-term disruptions in cash logistics/working capital on account of demonetisation, it has been decided that the last date of payment of coal value for booking against fuel supply agreement or any e-auction schemes that is due on or after November 18, 2016 and till December 9, 2016 is now extended up to December 10, 2016," a Coal India notice to its subsidiaries said. Coal, however, will be supplied only after the receipt of coal value according to existing provisions, it said. Consumers of coal pointed out that the fossil fuel is transported using both railways and roads. Payments to truckers, part of which is made in cash, are getting affected because of the cash crunch. Senior CIL officials met consumers a few days back, following which a decision has been taken to extend the deadline. "This offers some relief at a time when there is an uncertainty over cash-based payments," an industry source said. For Coal India, any disruption in payments can impact sales at a time both production and offtake in the first eight months of 2016-17 have remained subdued.