Bengal, Orissa & Chhattisgarh against coal price-pooling

West Bengal along with Orissa and Chattisgarh are opposed to price-pooling in coal, a top official of the West Bengal Power Department said on Thursday.

Speaking at the CII organised Energy Conclave, West Bengal power department principal secretary Malay K De said that West Bengal had written to the Union coal and power ministries opposing the move.

"West Bengal has opposed the move for price-pooling and we have already written to the coal and power ministries opposing the move. Along with us, at least two other states, I know, Orissa and Chattisgarh were not in favour of the plan," De said. De said there was no question of agreeing to the proposal in which common people of the state would have to pay additional electricity tariff.

The Coal India Ltd had written to state governments as well as to power companies for a feedback on price-pooling.

Price-pooling will help mostly the new power plants, mostly private, who could procure imported coal at prices lesser than what they were paying now, while it would be vice-versa for the existing power plants, a state government official said. Meanwhile, Coal India had notified the modified FSA (Fuel Supply Agreement) with 15 per cent imported coal at cost plus two per cent to meet 80 per cent supply quantity.

The modified FSA will reduce the proportion of imported coal in its committed fuel supply to power producers from 15 per cent this fiscal to 5 per cent in 2016-17, according to a new pact it will sign with the consumers.

CIL Chairman and Managing Director Narsing Rao had earlier said if price-pooling was implemented, all power consumers would have to bear the impact. However, it should be neutral to CIL, he added