Impact of coal price pooling to be known after finalisation

The government said that the impact of price pooling of coal on electricity tariff can be determined only after the mechanism is finalised. Planning Commission had said to offset the impact of high import costs, Coal India (CIL) should adopt a pooling formula on prices by combining rates of imported and domestic coal. "The impact of price pooling on electricity tariff and the common man can be ascertained only after the proposal is finalised," Minister of State for Coal Pratik Prakashbapu Patil said in a written reply to Lok Sabha.

Also Read: CIL for supply of imported coal on cost plus basis: Govt

Coal India (CIL) and Central Electricity Authority (CEA) are jointly working on price pooling mechanism and will submit the report to Power Ministry for consideration, the minister said. He also said the West Bengal Government has expressed reservation on the proposed mechanism. "The government will duly take it into consideration while deciding the matter," he said. Odisha government has also opposed to the Centre's proposal to introduce pooling price of coal, stating that it was not relevant to the power generating companies located very close to coal mines.

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