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BJP flays decision to allow pass-through of imported coal cost

Last Updated: Friday, June 21, 2013 - 23:34

New Delhi: BJP on Friday said the Union Cabinet`s decision to allow power producers to pass on higher cost of imported coal to consumers will burden the people and lead to increase in cost of manufactured products.
BJP spokesperson Prakash Javadekar criticised the government decision which will lead to higher power tariffs.

"Allowing passing of high cost of imported coal to consumers by the manufacturers will lead to increase in cost of the products for the consumers," Javadekar said.

He also said the increase in price of electricity will affect the common people or may lead to load shedding.

Javadekar maintained that some units may avoid use of imported coal to cut costs and this will lead to load shedding which will affect the people.

The Cabinet Committee on Economic Affairs today approved the pass-through of the proposal which would result increase in power tariff.

Finance Minister P Chidambaram later reasoned that there will be a marginal increase in power tariff depending on the cost of imported coal.

"They (IPPs) can import coal themselves if they wish, otherwise Coal India will import and this additional price which we pay for imported coal, obviously, has to be passed through in the power tariff," Chidambaram said.

He maintained that it is better to have power at high cost than to not have it.


First Published: Friday, June 21, 2013 - 23:34
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