Power and Coal Min to meet again on coal price pooling issue
New Delhi: Unable to break the logjam, the Power and Coal ministries will again meet in the next couple of days to come up with the "best possible" model for price pooling of imported and domestic coal.
Power Minister Jyotiraditya Scindia after an hour-long meeting with the Finance Minister P Chidambaram and Coal Minister Sriprakash Jaiswal said, "We will be meeting again in the next couple of days to narrow down, focus and come up with the best possible solution, which we will then take to CCEA (Cabinet Committee on Economic Affairs).
CCEA, in February, had given its in-principle approval to coal price pooling and had asked Coal and Power Ministeries to work out a formula to implement the same. The formula will help arrive at an average price for coal sourced from overseas and domestic locations.
Scindia said, "We are trying to put together as many models and try and find the best possible model which is feasible."
Coal Minister Sriprakash Jaiswal said: "Ministry of Power will give its comments on the issue and so will the Coal Ministry after which the issue will be resolved."
Various thermal power plants in the country have been stranded due to want of coal, the decision on coal price pooling will help these plants.
The power plants which have been commissioned before March 2009 will not get coal under the 'price pooling' mechanism.
Prime Minister's Office, last year, had directed Coal India and Central Electricity Authority (CEA) last year to work on price-pooling, so as to ensure 80 percent supplies to power plants.
The Coal India board had earlier approved the modified FSA without price-pooling, for assured supply of 65 percent through domestic sources and 15 percent from imports at cost plus basis.
Many state governments fear that the new mechanism would lead to increase in electricity tariffs.