• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset Realasset
moneycontrol.com

Home » News » Economy

Nov 20, 2012, 08.20 PM | Source: PTI

PowerMin to send revised plan on price pooling to CoalMin

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.

Like this story, share it with millions of investors on M3

PowerMin to send revised plan on price pooling to CoalMin

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.

Post Your Comments

Share Cancel

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.
   
"The Power Ministry will send a revised proposal on price pooling of imported coal to the Coal Ministry before the end of November," a government official said. The development comes against the backdrop of the Prime Minister's Office (PMO) asking Coal India and Central Electricity Authority to work on pooling mechanism jointly.

Also read: Early clearances will make coal auction successful: NTPC
    
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.

 

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
PowerMin to send revised plan on price pooling to CoalMin

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login