Nov 20, 2012, 08.20 PM | Source: PTI
Amid objections raised by a few states on price pooling mechanism for coal, the Power Ministry is likely to send a revised proposal on this to the Coal Ministry by the month-end.
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Some of the states, including West Bengal, have raised objections to the mechanism. According to CIL, price pooling was a mechanism to implement fuel supply agreements (FSA) with power firms and "if price pooling is approved then 15 per cent supply of imported coal will be not in the cost plus method, but in pooling mechanism".
Planning Commission had said that 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.
Also, there is a proposal to bring some changes in coal price pooling mechanism by deciding the pricing of imported coal on the calorific value of coal among others, sources said.
Planning Commission Deputy Chairman Montek Singh Ahluwalia had recently said the price-pooling mechanism should be adopted for fuel supply to power firms but solution to some of the issues involved could take some time.
The CIL board has earlier approved the modified FSA without price-pooling with 65 per cent domestic coal and 15 per cent imported coal at cost plus basis.
So far, only 30 power companies, including Lanco and Adani have signed FSAs with CIL.