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Power and Coal Ministry officials to meet again to discuss on price pooling issue

12 Dec 2012 Evaluate
Aiming a solution for the issue of pooling prices of domestic and international coal, the official in both the Power Ministry and the Coal Ministry are likely to meet again by next week. The meet is likely to resolve the deadlock over price pooling of coal and enable generation firms to ink fuel supply pacts before month end.

Earlier in October, on the request from Prime Minister's Office (PMO), both Coal India and CEA had started reworking on the coal price pooling mechanism and will be submitting the revised scheme to the Power Ministry for consideration. Price pooling was a mechanism to implement fuel supply agreement (FSA), the approval of then 15 percent supply of imported coal will be not in the cost plus method, but in pooling mechanism.

Coal India’s board had approved the modified FSA without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost plus basis. The Planning Commission had also suggested that Coal India should adopt a pooling formula on prices by combining rates of imported and domestic coal.

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