CCEA to discuss coal price pass-through mechanism on June 7

KOLKATA: The Cabinet Committee on Economic Affairs may decide on coal price pass-through mechanism on June 7. 

"The CCEA is meeting on June 7 to take a call on coal price pass-through mechanism," Union Coal Minister 
Sriprakash Jaiswal has said. 

A note to the CCEA on the mechanism has been submitted, but the final call will be taken by the Cabinet, said sources. 

The government is mulling import of coal as
Coal India LtdBSE -0.46 % (CIL) will supply 65 per cent of the requirement from domestic sources and another 15 per cent can be provided from overseas market at a cost-plus basis for power plants commissioned post 2009. 

Price pooling is the averaging of the price of imported and indigenous coal that will make the fuel affordable to new power plants, which have low linkages. Price pooling has been opposed by several state governments including West Bengal and Orissa on fears that the price of pooled coal will be higher. 

On April 22, the government has buried a proposal to pool prices of imported and domestic coal to make the fuel affordable to new power plants, owing to sharp opposition to the scheme.