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Govt to rethink coal price pooling

The government is likely to reconsider coal price pooling yet once again, with the parliamentary standing committee on coal and steel opposing pass over of imported coal prices to end (power) consumers.

The parliamentary panel in its report said the cabinet committee on economic affairs (CCEA) have completely ignored the interest of the end consumers, and have allowed the power lobby to control things at its interest. The CCEA decision has thrown salt on the common man, already wounded with price rise.

Kalyan Banerjee, chairman of the parliamentary panel, said though the coal ministry is yet to respond to the parliamentary panel on this issue, the PMO has asked the coal ministry to revisit the price pooling issue. The CCEA is learnt to have told Parliament that passing over the price "secures the interest of enhancing power production in the country." But the parliamentary panel asked the ministry to look into other alternatives before passing on the price to the end consumers.

The power ministry has asked 36 power plants to import around 82 million tonne in FY 14 on the basis that the extra price would be passed on to the consumers.

Source: The Financial Express