Hike in domestic coal prices needed for price pooling: Coal Minister

NEW DELHI: The burden of supplying imported coal to power stations at the price of indigenous coal price is to be passed on to the consumers of domestic coal so that there is no revenue loss for Coal India Ltd ( CIL), minister of state for coal Pratik Prakashbapu Patil said on Tuesday.

The Central Electricity Authority and CIL are jointly working on the scheme of price pooling and will submit the same to the power ministry for consideration, Patil said in a written reply in Lok Sabha.

The impact of price pooling on electricity tariff and the common people can be ascertained only after the proposal is finalised, he said.

Ministry of Power and Central Electricity Authority had mooted a proposal that CIL import coal to fulfill its fuel supply agreement obligations towards power stations.

Supply of such coal would be decided on the basis of the location of the plants, irrespective of the plants being in public or in private sector, provided such plants have long term power purchase agreements with distribution companies.

Patil said the government of West Bengal has expressed reservations on the proposed price pooling. The government will duly take it into consideration while deciding the matter, he said.