India’s monopoly coal miner, Coal India, is facing a challenge of liquidity with outstanding dues from state power generation companies rising to Rs.22,000 crore. Coal demand from thermal power companies is already tepid. Hence CIL is not in a position to even regulate supplies to the power companies.

The promised government assistance under the Rs.90,000 crore power genco funding plan of May 2020 is yet to fructify. This has put Coal India in a tight position with respect despite normally benig a company with comfortable cash flows. This is evident from the fact that net cash flows from operations for FY20 at CIL fell almost 75% on a YOY basis.