Coal pricing formula caused Rs 8,400 cr under-recovery

The power producers are now asking for a separate index for deciding the price of coal and its transportation, because, they are claiming, they pay more than what the indices work out.

The cost of coal comprises several elements before it lands at the power unit. These include taxes imposed by states, the cess imposed by the Centre and states, the coal terminal surcharge, the busy season surcharge, and the development surcharge during various demand seasons.

The clean energy cess is imposed to recover the cost of investment in renewable and environment projects. The tax and surcharges on transportation are