Coal, Power ministries to discuss price pooling next week
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Coal, Power ministries to discuss price pooling next week

Last Updated: Tuesday, December 11, 2012, 23:43
 
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Coal, Power ministries to discuss price pooling next week
New Delhi: The Power Ministry and the Coal Ministry are likely to meet again, next week, in order to resolve the deadlock over price pooling of coal and enable generation firms to ink fuel supply pacts before month end.

The officials in both the ministries are in constant discussions to solve the issue of pooling prices of domestic and international coal.

"I have a meeting with the Ministry of Coal next week, this (price pooling) is one of the issues we are going to deliberate and discuss," Power Minister Jyotiraditya Scindia told reporters at a CII event.

The minister said he is confident of solving the matter at the earliest.

"I am very confident of the support from Coal and Environment Ministries and we need to work holistically to achieve the target that we have set for ourselves and the country," Scindia said.

"The pooling of coal is the need of the hour, the mechanics of that are still under determination, very soon in the near future we will be able to come out with solution," he added.

The Prime Minister's Office (PMO) had, in October, asked both Coal India and Central Electricity Authority (CEA) to work on price-pooling.

Coal India and CEA are reworking the coal price pooling mechanism and will submit the revised scheme to the Power Ministry for consideration.

Coal India had earlier said price pooling was a mechanism to implement fuel supply agreement (FSA). If price pooling was approved then 15 percent supply of imported coal will be not in the cost plus method, but in pooling mechanism.

The board of the company had earlier approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost plus basis.

A total of 33 power units, including Rosa and Mundra Adani, having a capacity of 9,671 MW have entered into modified FSA with CIL.

The Planning Commission had also suggested that Coal India should adopt a pooling formula on prices by combining rates of imported and domestic coal.

PTI


First Published: Tuesday, December 11, 2012, 23:43


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