Coal price pooling likely only for power plants after March 2009
Among the projects that might shift to price pooling are Reliance Power’s Rosa, NTPC Simadri and Sipat, Lanco’s Anpara, Adani’s Mundra, Indiabulls’ amravati and GMR’s Kamalanga.
Under the pooling system, coal prices would be very close to international prices. India’s coal consumption is estimated to be around 500 million tonnes in 2012-13, including imports in excess of 80 million tonnes. While the domestic price of the fuel ranges between R2,200 and R2,500 a tonne, import prices are roughly 50% higher. Still, pooling would result in an increase of R100 a tonne only because imported coal is generally more efficient with higher calorific value.
Sources said that the coal ministry has proposed the limited application policy for price pooling in a note forwarded to the Cabinet Committee on Economic Affairs (CCEA). The CCEA had earlier asked the coal and power ministries to finalise a workable formula on