Press Information Bureau

Government of India

Ministry of Coal

27-November-2012 13:29 IST

Ministry of Power (MoP) and Central Electricity Authority (CEA) had mooted a proposal that Coal India Limited (CIL) import coal to fulfill its Fuel Supply Agreement (FSA) obligations towards power stations, for supplies at Gross Calorific Value (GCV) parity price of domestic coal. Supply of such coal would be decided on the basis of the location of the plants, irrespective of the plants being in public or in private sector, provided such plants have Long Term Power Purchase Agreements (PPAs) with DISCOMs. The burden of supplying imported coal to power stations at GCV parity price of domestic coal is to be loaded on the price of the domestic coal so that there is no revenue loss for CIL.

CEA and CIL are jointly working on the scheme of price pooling and will submit the same to Ministry of Power for consideration.

The impact of price pooling on electricity tariff and the common people can be ascertained only after the proposal is finalized.

Government of West Bengal have expressed their reservations on the proposed price pooling. The Government will duly take it into consideration while deciding the matter.

This information was given by the Minister of State in the Ministry of Coal, Shri Pratik Prakashbapu Patil in a written reply in Lok sabha today.

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NCJ/ RV

Price pooling of coal: imported supplies set at domestic GCV parity, with import cost absorbed into domestic coal pricing. Price pooling would have the domestic supplier import coal and supply it to power stations at GCV parity with domestic coal, with allocation based on plant location for facilities holding long term power purchase agreements, and the additional cost borne through loading the domestic coal price to prevent revenue loss for the supplier.