Power Min sends comments on coal price pooling to Coal Min

The Power Ministry has suggested to the Coal Ministry that the difference in cost of imported and domestic coal should be added to the cost of indigenous fuel at the time of finalising proposal for pooling coal prices.

The ministry has conveyed its comments on pooling of coal prices to the Ministry of Coal, which is preparing a Cabinet note on the proposal, to be floated at the earliest.

"The ministry has sent its proposal after consultation with the Central Electricity Authority (CEA)," a Power Ministry official said.

Last month, Power Minister Jyotiraditya Scindia had said that a joint policy by Power and Coal Ministries on pooling of prices would be formulated.

Both the ministries had said that they would work out a mechanism for coal prices to mitigate the impact of costlier imported coal for the generation companies.

According to CEA's recommendations, the difference in price of the imported and domestic coal would be transfered on to the cost of domestic coal. Imported coal is approximately priced at Rs 6,000 per tonne and domestic coal at Rs 4,500 per


The approximate difference of Rs 1,500 per tonne would be multiplied by the total quantity of coal to be imported, including the cost of transportation, and the entire sum would be divided on the basis of quality of coal to the power stations.

CEA has also said that the coastal plants and power plants which are equidistant from coast and mines should get imported coal.

It has said that the pithead-based stations or stations which are near the mines will get domestic coal to meet 80 per cent of the quantity Coal India is mandated to supply.

It also suggested that the coal earmarked for old power plants that are coastal would be forwarded to pithead plants.

The CEA has also suggested that top quality coal would be exempted from such an arrangement.

... contd.

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