When the second round of reforms measures were announced earlier this week , the government chickened out in front of political pressure and shelved the proposal to pool prices of imported and domestic coal so that new power plants can find affordable. In February, however, CCEA had approved the same in-principle. The pooling was being opposed for various reasons by older power plants, domestic coal producers as well as some of the state governments.
Speaking to CNBC-TV18, former CMD of Coal India , Partha S Bhattacharyya said there is a vast difference in the the quality of Indian coal and that of international coal, which makes price pooling proposal difficult to implement. Price-pooling refers to averaging of prices of domestic and imported coal to get a uniform feedstock price.
Meanwhile, Coal India altered certain provisions of model fuel supply agreement (FSA) applicable to new power plants, in the face of its differences with NTPC over coal quality issue. Power producer NTPC had refused to sign the FSA with CIL saying the quality of coal supplied by the coal PSU was poor and could even cause damage to its machinery.
Bhattacharya also stressed on the fact that time has come de-nationalise the mining space and suggested that foreign miners to mine coal in India.
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