The CCEA has deferred decision on natural gas pricing. Early this year, a panel of experts had recommended doubling domestic gas price from about USD 4.2 per mmBtu (metric million British thermal units), with the price to be reviewed on a monthly basis.
The Cabinet Committee on Economic Affairs (CCEA) has approved coal price pass-through mechanism on Friday, reports CNBC-TV18.
Under the pass-through mechanism, the entire additional cost of imports would be passed on to consumers as against the averaging of prices of imported and domestic coal under the earlier planned price-pooling mechanism.
Earlier, there was a proposal to pool prices of imported and domestic coal to make the fuel affordable to new power plants
Simultaneously, the cabinet also cleared proposal of 5 percent divestment in Tamil Nadu-based Neyveli Lignite , which would help garner around Rs.450 crore to the government.
The cabinet) had earlier put this proposal on back burner but the Department of Disinvestment (DoD) moved the proposal again.
Early this year, a panel of experts had recommended doubling domestic gas price from about USD 4.2 per mmBtu (metric million British thermal units), with the price to be reviewed on a monthly basis. However, the oil ministry in its final proposal instead suggested an increase to above USD 6.7 per mmBtu level and has also called for quarterly review.
The note for the CCEA proposes new gas price between USD 6.76/mmBtu to USD 8.93/mmBtu in FY14. Further in FY15, it should be at around USD 10.29 and should be raised to USD 10.92 in FY16.
Coal India stock price
On July 03, 2015, Coal India closed at Rs 417.15, down Rs 6.9, or 1.63 percent. The 52-week high of the share was Rs 429.00 and the 52-week low was Rs 331.60.
The company's trailing 12-month (TTM) EPS was at Rs 21.19 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 19.69. The latest book value of the company is Rs 47.22 per share. At current value, the price-to-book value of the company is 8.83.
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Economy turning for sure but cant say for mkts: DSP