Review pass through policy for coal import: Govt told

A Parliamentary panel today asked the government to review the mechanism in the coal price policy, saying the method makes private power companies main beneficiaries at the cost of consumers interest.

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The panel's recommendations come barely a couple of months after the government allowed power companies to pass on cost of imported coal to consumers, a move that is likely to raise electricity tariff. "This decision (nod to pass through mechanism) of the government is likely to increase electricity tariffs further," the Standing Committee on Coal and Steel, headed by Kalyan Banerjee, said in its report tabled in Parliament. "The committee are perturbed to note that the decision will only help the power companies, especially the private sector, who will be the main beneficiary of the decision as they will not pass on benefits to the consumers," it said.

The panel said the interests of the consumers have thus been ignored and an additional burden on higher coal price subsequently resulting in higher electricity tariffs have been put on them. "Review this new coal price policy in the interest of consumers so as not to pass this additional burden on them," it said. The panel said that it has been apprised that the new coal price policy approved by the government allows power companies to pass on burden on expensive coal to consumers.