Pooling coal prices may lead to power tariff revision: Montek

NEW DELHI: Coal pool pricing is likely to lead to revision in power tariff but it shouldn't be a big problem, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.

"Absolutely (for increasing tariffs). You know if you don't produce enough of your own coal and you are going to buy imported coal, imported coal is more than twice expensive than domestic coal, somebody has to pay the price," he said when asked whether there will a rise in tariffs upon pooling of domestic and imported coal.

"It (pooling coal prices) will lead to a little bit (increase in tariffs), but remember you are only importing may be 10 per cent of the total coal you need, so the increase in coal... It will (get) reflected in an adjustment in the tariff. I don't think that's a big problem," he told reporters on the sidelines of a function here.

A cabinet meeting is slated on Monday to discuss issues related with pooling coal prices.

The Cabinet Committee on Economic Affairs in February approved in-principle the averaging of prices of domestic and imported coal to get a uniform feedstock price in the country,

A final decision on the issue is pending due to differences between the Coal and Power Ministries on how the impact of higher imported coal prices will be shared between Coal India Ltd and power companies.

Also, Prime Minister's Office had last year directed CIL and Central Electricity Authority (CEA) to work on pooling coal prices to ensure 80 per cent supplies to power plants.