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Rising coal prices eroding competitive edge: Experts

Rising coal and gas prices could jack up electricity generation costs and erode the competitiveness of industries in India, opined VK Garg, former chairman, joint electricity regulatory commission, Goa.

Speaking at the 15th regulators and policymakers retreat organized by the Independent Power Producers Association of India (IPPAI) held in Panaji on Thursday, Garg suggested rationalizing rail freight to bring down coal costs for power generation.

This warning came amid indications that the Indian government could soon give the go-ahead for import-parity pricing of coal and natural gas, following crude oil.

"Energy costs of the industry in the US, China and Europe are expected to fall in coming years due to the ?shale gas revolution' in those countries even as electricity tariff is rising at an alarming pace in India," pointed out Harry Dhaul, director generator, IPPAI, warning that over the next 5-10 years, the Indian industry could face stiff competition from manufacturers from these countries if effective ways are not found to cut power costs.

Source: The Times of India