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Web Exclusive | October 2012

Power producers' plea for imported coal at lesser price

To ensure lifeline to power producers the Coal India (CIL) should supply imported coal at a subsidised (pooled) price to power producers, especially to those in the private sector, Association of Power Producers said on October 11.

National Coal Distribution Policy, 2007 allows the coal major to supply imported coal and adjust the over all price. A former bureaucrat at the Union Power Ministry, Khurana was critical of the “activism” on the part of CIL board in objecting a proposal to pool the price of imported coal with domestic produce.

The board of directors of CIL raised 'objections' to the proposal on grounds of possible financial risk of the company if existing power sector consumers deny subsidising the newly commissioned generation capacities. Khurana, however, felt that import is the only option to bridge the supply gap.

And, to make the proposition economically viable imported coal should be subsidised by taking advantage of the arbitrage opportunity between domestic and imported coal.

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