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Tuesday, July 10, 2012
PMO to decide on price pooling for coal import – Report
It is reported that Prime Minister’s Office will shortly decide on industry’s demand for price pooling for domestic and imported coal to ensure supply at reasonable prices and retain low electricity tariff.
Promoters of private sector companies, including Mr Ratan Tata and Mr Anil Ambani, have been demanding price pooling after steep escalation in prices of imported coal, especially from Indonesia, used by Indian power plants.
Following a revision in the coal pricing formula, the price of imported coal from Indonesia has risen up steeply by USD 25 to USD 30 per tonne, rendering power generation costs prohibitive and existing tariff commitments unmanageable. However, given the cost implications pool pricing for government run Coal India Limited, PMO is yet take a decision on the issue.
Meanwhile, PMO has deferred a decision on exempting CIL from conducting public hearings for 12 coal projects and go ahead with mining the blocks.
PMO is reported to have held a separate meeting on the issue, and deferred a decision, pending further consultations. Officials from PMO, coal, power and environment ministries met the CIL top brass on the subject.
While the environment ministry is believed to have assured that norms relating to public hearings would be done shortly to hasten up the process, the nodal ministry seems unconvinced about exempting CIL in toto.
Public hearings for environment clearance involves meeting of all stakeholders, including villagers of the area to be affected, district administration, the company and government representatives, to ensure minimum damage to environment from the project.
Source: Steel Guru