Millennium Post

Happy with price-pooling of coal, say private power producers

Happy with price-pooling of coal, say private power producers
A number of private power producers have intimated to Coal India Ltd [CIL] that they are agreeable to the price-pooling mechanism for coal.’Many private producers have conveyed to CIL that they are happy with price-pooling mechanism,’ said an official from the company.

To offset the impact of high import costs, the Planning Commission has said that CIL should adopt a pooling formula on prices by combining rates of imported and domestic coal.

The West Bengal Government, however, has raised objections to price-pooling of coal and has intimated to CIL that such a mechanism is not acceptable to it.

CIL had recently sought comments from power producers and state governments on price pooling mechanism.

The state-owned firm has sought comments from those power plants that have come up after April, 2009 and will be set up till March, 2015, the official said.

Commenting on the price pooling coal secretary S K Srivastava had said on Friday, ‘The matter is under consideration and dialogue with the power ministry, and as in when the final decision is taken on that the board will consider it and they can always review the decision with regard to the imported coal on the cost plus basis.’

CIL chairman and managing director S Narsing Rao had last month said, ‘Price pooling is a mechanism to implement FSAs.

If price pooling is approved then 15 per cent supply of imported coal will be not in the cost plus method, but in pooling mechanism.’

The CIL board had last month approved the modified fuel supply agreement without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis.   
PTI

PTI

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