The coal ministry has set up an Inter-Ministerial Committee (IMC) to look into coal linkages of the power plants having aggregate capacity of 16,000 MW, which are at the advanced stages of commissioning. The Inter-Ministerial Committee (IMC), formed recently will have members from various ministries including steel, railways, power and law. Following a direction from the Cabinet Committee on Economic Affairs (CCEA), the panel is likely to meet soon to deliberate on the matter.
Earlier, the CCEA had given its in-principle approval for price pooling of coal by which prices of domestic and imported coal are averaged to get a uniform price for the fuel in the country. The decision on price pooling has been pending for long time because of the conflict between the coal and power ministries on how the impact of higher imported coal prices will be shared between state miner Coal India (CIL) and power companies.
Earlier, the power ministry after consultation with the Central Electricity Authority (CEA) has suggested the Coal Ministry that the difference in cost of imported and domestic coal should be added to the cost of indigenous fuel at the time of finalizing proposal for pooling coal prices.
In respect of identified power projects of 60,000 MW capacity, which have been assured for coal supply during 12th Five Year Plan period (2012-17), a total of 143 fuel supply agreement (FSA) are to be signed by CIL till 2014-15. Of these, 92 FSAs are to be signed by the month end. So far, the 55 power companies have entered into FSAs with CIL, which accounts for over 80 percent of the domestic coal production. Further, CIL board has also accepted the modified FSA with 65% domestic coal and 15% imported coal.
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