SENSEX NIFTY
Feb 26, 2013, 06.48 PM IST | Source: PTI

Plants commissioned before Mar 2009 not under price pooling

Power plants commissioned up to March 31, 2009, will get coal at Coal India's notified prices, which would address concerns of states over 'price pooling' of the dry fuel, the government said today

Power plants commissioned up to March 31, 2009, will get coal at Coal India 's notified prices, which would address concerns of states over 'price pooling' of the dry fuel, the government said today.

"In the CCEA (Cabinet Committee on Economic Affairs) has decided that in respect of plants commissioned up to March 31, 2009, domestic coal will continue to be supplied as hitherto at CIL's (Coal India) notified prices," Coal Minister Sriprakash Jaiswal said in a written reply to the Lok Sabha.
    
"This addresses the major concerns of states with regard to price pooling," the minister added.
    
The minister further said that some of the state governments had expressed reservation on the mechanism and in meeting held with power utilities "five power utilities agreed to the price pooling, while 10 power utilities opposed it."
    
"A detailed note on pooling of price of imported coal with domestic coal was sent by the Ministry of Coal to Cabinet Committee on Economic Affairs. The CCEA considered the note ... and has decided on certain guidelines for pooling of price," the minister said.

Also read: Railways plan Rs 4,000cr invst for coal mines connectivity
    
A report on the mechanism was prepared by Central Electricity Authority (CEA) in consultation with CIL.
    
CIL had said price pooling is a mechanism to implement fuel supply agreement (FSA) that it has to sign with power companies. If price pooling is approved, then 15 percent supply of imported coal "will be not in the cost plus method, but in pooling mechanism", it had said.
   
The CIL board had earlier approved the modified FSA without price-pooling, for assured supply of 65 percent through domestic sources and 15 percent from imports at cost plus basis.
   
Many state governments, including West Bengal, have voiced their opposition to the price pooling issue as they fear that this will lead to increase in electricity tariffs.

Coal India stock price

On December 19, 2014, Coal India closed at Rs 376.55, up Rs 9.15, or 2.49 percent. The 52-week high of the share was Rs 423.85 and the 52-week low was Rs 240.50.


The company's trailing 12-month (TTM) EPS was at Rs 21.06 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 17.88. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 14.46.

Set email alert for

ADS BY GOOGLE

video of the day

Rupee weakness modest, see yields at 7.60% in Q1: Deutsche

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.