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The Cabinet Committee on Economic Affairs (CCEA) is likely to meet yet again to take a final call on the contentious issue of coal price-pooling on June 7.
"The CCEA is meeting on June 7 when price-pooling is on the agenda. We have submitted a note to the CCEA on the mechanism, but the final call will be taken by the cabinet," Union Coal Minister Sriprakash Jaiswal said.
The Prime Minister's Office (PMO) had earlier directed CIL and Central Electricity Authority (CEA) to work on pooling coal prices to ensure 80% supplies to power plants. The CCEA in February had approved in-principle the price-pooling mechanism. Later, the CCEA met last month to discuss the issue, but failed to finalise the price-pooling mechanism.
Price-pooling is the mechanism of averaging of the price of imported and indigenous coal. Differences between the coal and power ministry on how the impact of higher imported coal prices will be shared between Coal India (CIL) and power companies, has been a stumbling block for the final call.
Several state governments like West Bengal too are opposed to the price-pooling, saying this would lead to an increase in coal price.
No stake sale anytime soon
Responding to a query Jaiswal, said, the ministry has no immediate plan to initiate the proposed stake sell plan.
"We are not thinking about this right now," he said.
Asked whether the disinvestment would happen in the current fiscal, Jaiswal added,"Well it’s only June, so it’s too early to comment on that. It is not that I am against it, but we are not pushing it right now."
It should be noted that unions had already threatened to go on an indefinite strike if the government goes ahead with the stake sale plan.
The minister, however said, all aspects would be looked into before initiating the process. The proposed stake sale of CIL is likely to generate Rs 20,000 crore for government.
CIL restructuring
Commenting on the proposed CIL restructuring, he said, nine consultants had been shortlisted and one of the external consultants would be engaged within a month or two.
However, he added, personally he was never in favour of splitting the CIL.
"The restructuring study excercise does not only mean splitting of Coal India into smaller companies and nowhere in the mandate it is mentioned. They will advise us various issues which are needed to improve the performance of Coal India.," he said.
Restructuring of CIL was originally proposed by the T L Shekhar Committee on coal sector reforms that submitted its recommendations in 2007.
The Planning Commission had suggested spinning off CIL subsidiaries into separate entities to ramp up production by infusing competition.
The government accepted the recommendations and initiated the go for the restructuring in the 12th plan period (2012-17) as suggested by the panel.
