Coal news and updates

Power bid to check coal price

The power ministry has asked its coal counterpart to advise CIL to supply fuel at the company’s notified price, cautioning that an increase in the cost of coal will result in more expensive electricity.

“Projects of 4,660MW capacity and other similarly-placed projects are being offered coal by Coal India Ltd on ‘as is where is’ basis under the MoU (memorandum of understanding) route. Lifting such coal involves additional handling and transportation costs on the part of power project developers,” power secretary Pradeep K. Sinha said in recent letter to coal secretary S.K. Srivastava.

In addition, coal companies (CIL subsidiaries) are charging project developers 40 per cent premium over the CIL notified price. Coal companies are also charging a premium of 20 per cent over the notified price in some other instances.

Coal India accounts for over 80 per cent of the domestic coal production.

Source: PTI