Coal India tops CPSEs in MSME procurement on GeM in FY25; spends record ₹2.08 lakh crore
NEW DELHI: State-owned Coal India Ltd (CIL) has reported a 5% rise in trade payable balances to Micro, Small and Medium Enterprises (MSMEs), reflecting its growing procurement and transaction volume with small businesses and its continued push to strengthen the MSME ecosystem.
CIL recorded a record procurement of ₹2.08 lakh crore for goods and services through GeM during FY25, registering a 110% jump over ₹99,305.38 crore in FY24. Coal India has emerged as the top-performing Central Public Sector Enterprise (CPSE) in FY 2024-25 in terms of procurement value through the Government e-Marketplace (GeM), reinforcing its position as a major driver of MSME empowerment and transparent public procurement, the company’s annual report said.
The coal major said its transition to GeM-based procurement has resulted in faster tender cycle time, improved price discovery and greater access for Micro, Small and Medium Enterprises (MSMEs) in its supply chain.
CIL has evolved in step with changing times, fueling the nation’s growth story since 1975. It contributed ~74% of India’s total coal production in FY 2024–25.
All MSME payments are cleared within 45 days
CIL said it has strengthened internal controls to ensure timely payments and reported that all MSME invoices were cleared within the statutory 45-day limit in FY25, in line with the Department of Public Enterprises (DPE) guidelines.
The company also reported a 5 per cent rise in trade payable balances to MSMEs, reflecting increased procurement and transaction volumes with small businesses as the Group scaled up operations.
CIL said the rise in MSME trade payables is a mark of its continuous endeavour to promote and sustain MSME participation, ensuring that small suppliers remain integral to its growing supply chain.
Overall creditor dues rise 22% as operations intensify
Coal India further noted that its ambitious production and performance targets required an intensified scale of operations, which contributed to a broader rise in payables.
The company reported a 22 per cent increase in outstanding dues to creditors other than MSMEs, indicating higher vendor engagement across categories such as infrastructure services, equipment procurement, operational contracts, logistics and project execution.
CIL maintained that the rising payables are directly linked to expanded procurement and increased scale of business activities, and should be seen as a reflection of operational growth rather than financial stress.
Lower bid security, simplified auctions to boost MSME participation
To widen MSME participation in the coal ecosystem, CIL said it has simplified auction methodologies and lowered bid security requirements, enabling more small vendors to participate in bidding and commercial supply chains.
The company added that its shift to mechanised loading and roll-out of First-Mile Connectivity (FMC) projects has created fresh opportunities for MSMEs, particularly those engaged in technology support, infrastructure development and maintenance services.
Skill development push: 8,732 individuals trained
Beyond procurement, CIL said its MSME and community development agenda includes skilling programmes. During FY25, the company trained 8,732 individuals across various trades, focusing on youth and women-centric programmes aimed at supporting local livelihoods and entrepreneurship.
CIL also said that as it diversifies into emerging segments like renewable energy and coal gasification, it is expanding opportunities for MSMEs to contribute to its evolving value chain.
The company reiterated that by combining large-scale procurement, timely payments and vendor ecosystem development, it remains committed to supporting India’s “Viksit Bharat” vision and strengthening MSME stability.
