CCEA gives in-principle nod to coal price pooling

The Cabinet Committee on Economic Affairs (CCEA) has accorded an "in-principle" nod to a proposal that entails the pooling of prices of domestic and imported coal, even as the coal and power ministries have been asked to get back with specifics of the proposal.

"The basic principles and parameters have been identified and now... the real numbers would have to be done in the next couple of days. The decision in principle has been taken (on price pooling).

There are certain data which have to put on to these principles," Information and Broadcasting Minister Manish Tewari was quoted by PTI as telling reporters after a Cabinet meeting on Tuesday.

He added, however, that "structure of decision has been put in place" and "coal and power ministries will come back (to the CCEA) with the specifics".

The pooling of coal, according to internal estimates of the coal ministry, is likely to translate into a cumulative impact of over Rs 4000 crore on fuel prices for power plants and lead to increase in electricity costs by upwards of 13 paise per unit (kWh). While the power ministry would have make amendments in its statutes to ensure that the cost is a pass through, the state-run power utilities would have to share increased costs despite the fact that the outstanding dues of Coal India from them have surpassed Rs 6,000 crore.

ALSO READ

After lull, highway projects see aggressive bid offers

PM: Govt initiating more measures to attract investments

Cautious RBI cuts repo by 25 bps, says little space for more easing

‘Govt mulling stronger laws to block Ponzi schemes’