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Coal | October 20, 2014
#44581

Centre may consider price pooling for imported coal

The Government of India is considering the proposal to pool the prices of imported and domestic coal for power plants commissioned after 2009. The power plants are those without any coal linkage or the ones to whom coal blocks were allotted but mining is yet to start due to pending forest and environment clearances. The power ministry pegs the figure at Rs 1 lakh crore worth of project that can take off if the price pooling is agreed by the Cabinet. Most of these plants are with the private sector. As per the pooling mechanism, Coal India will buy imported coal and blend it with its own stock. The imported coal will be costlier than the domestic fuel, thereby raising the power tariff by 75 paise in the remaining months of this fiscal.

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