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Coal Minister confirms SEBs nod for pooling formula for coal pricing

17 Jul 2012 Evaluate

The Coal Minister, Sriprakash Jaiswal has declared the Sates Electricity Boards’ (SEBs) consent for implementing pooling formula for coal pricing. The Central Electricity Authority (CEA) had held discussions on the pricing issue with SEBs early this month. The price pooling between the domestic coal and imported coal would raise the electricity generation cost by 7-8 paise for every unit. This had resulted in protests from financially beleaguered SEBs, as they cannot pass the burden to the consumers.

To boost the coal industry, the ministry has suggested the entry of public sector companies, such as MMTC and STC in import of coal. It had also offered the railways an investment in tracks, wagons and rakes, as it earns 50% freight income from coal transportation, in hopes that the system could maximize coal output. Further, the ministry has attempted to extend the green clearance for 13-14 coal blocks as to ensure immediate extraction.

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