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Web Exclusive | March 2013

Govt to set up panel to work on price pooling

Minister of State for coal Pratik Prakashbapu Patil informed Rajya Sabha that the CCEA (Cabinet Committee on Economic Affairs) approved in-principle, certain guidelines for pooling of price.

The committee also directed for constitution of an inter-ministerial committee to work out the modalities, the minister said. Price pooling essentially meas blending the cost of domestic fossil fuel with the imported variety.

The minister further informed that the CCEA decided that in respect of power plants commissioned up to March 31, 2009, domestic coal with be supplied "as hitherto at CIL's ( Coal India) notified prices, thereby addressing the concerns raised by the states with regard to the mechanism.

Earlier, 10 power utilities had opposed price pooling and some state governments had also expressed reservations on the same.

The minister also said that the impact of price pooling on the unit prices of electricity would be dependent on various factors like quantity, quality and price of imported coal and the quantity of indigenous coal.

He informed this in response to another question on the impact of the mechanism on the power tariffs.

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