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Coal price pooling will hike power tariff: Naveen.


Date: 16-05-2013
Subject: Coal price pooling will hike power tariff: Naveen
Opposing the move to pool prices of imported coal with that of domestic coal, chief minister Naveen Patnaik has written to Prime Minister Manmohan Singh stating that introduction of price pooling will escalate power tariff.

Patnaik’s opposition to price pooling comes at a time when the issue is hanging fire with most states taking exception to the move fearing rise in electricity tariff.

“The state government is of the view that transporting coal from the pitheads of coal bearing states to non-coal bearing states and transporting imported coal to the pithead plants as envisaged in the pooling of prices of imported coal with domestic coal by Ministry of Coal does not appear to be economically prudent. 

The introduction of the concept of pooling price will unnecessarily increase transportation costs and consequently the power tariff which is certainly not in the national interest,” Patnaik said in his letter.


Opposing the move to pool prices of imported coal with that of domestic coal, chief minister Naveen Patnaik has written to Prime Minister Manmohan Singh stating that introduction of price pooling will escalate power tariff.

Patnaik’s opposition to price pooling comes at a time when the issue is hanging fire with most states taking exception to the move fearing rise in electricity tariff.

“The state government is of the view that transporting coal from the pitheads of coal bearing states to non-coal bearing states and transporting imported coal to the pithead plants as envisaged in the pooling of prices of imported coal with domestic coal by Ministry of Coal does not appear to be economically prudent. 

The introduction of the concept of pooling price will unnecessarily increase transportation costs and consequently the power tariff which is certainly not in the national interest,” Patnaik said in his letter.


Source : sify.com

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