Inter-min panel to work out modalities of coal price pooling
New Delhi: The government Monday said an inter-ministerial panel will work out the modalities of price pooling mechanism for coal.
The mechanism for pooling the price of coal involves blending the cost of domestic fossil fuel with the imported variety.
"The CCEA (Cabinet Committee on Economic Affairs) has approved in-principle, certain guidelines for pooling of price and has directed for constitution of an inter-ministerial committee to work out the modalities," Minister of State for coal Pratik Prakashbapu Patil said in a written reply to Rajya Sabha.
He also added that the proposal on pooling price of imported with domestic coal was considered by the CCEA.
The CCEA also decided, the Minister said, that in respect of power plants commissioned up to March 31, 2009, domestic coal with be supplied "as hitherto at CIL's (Coal India) notified prices," thereby addressing the concerns raised by the states with regard to the mechanism.
Earlier, 10 power utilities had opposed price pooling and some state governments had also expressed reservations on the same.
Replying to another question on the impact of the mechanism on the power tariffs, the minister said, "The impact on the unit prices of electricity would be dependent on various factors like quantity, quality and price of imported coal and the quantity of indigenous coal."