Pvt power producers happy with price-pooling of coal

number of private power producers have intimated to Coal India Ltd (CIL) that they are agreeable to the price-pooling mechanism for coal. “Many private producers have conveyed to CIL that they are happy with price-pooling mechanism,” said an official from the company. To offset the impact of high import costs, the Planning Commission has said that CIL should adopt a pooling formula on prices by combining rates of imported and domestic coal.

The West Bengal government, however, has raised objections to price-pooling of coal and has intimated to CIL that such a mechanism is not acceptable to it. CIL had recently sought comments from power producers and state governments on price pooling mechanism.

The state-owned firm has sought comments from those power plants that have come up after April, 2009 and will be set up till March, 2015, the official said. Commenting on the price pooling coal secretary SK Srivastava had said on Friday, “The matter is under consideration and dialogue with the power ministry, and as in when the final decision is taken on that the board will consider it and they can always review the decision with regard to the imported coal on the cost plus basis.”

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