Coal India Ltd may suffer losses to the tune of Rs 3,000
crore, if it implements the proposal for pool pricing formulated by Central
Electricity Authority.
Coal India plans to import around 20 million tonnes of coal
in 2012-13. The anticipated losses to Coal India, spread over the next 20
years, even at the current levels of imports and the sale prices will come to
nearly Rs 60,000 crore, say sources.
This observation has been made by the independent directors
of the company. While giving their note of dissent before the Board of Coal
India, they said that the company should not agree to CEA proposal, which would
result in supplying subsidised imported coal to power companies, which is not
legal.
According to the New Coal Distribution Policy (NCDP), Coal
India may adjust its overall price when coal is imported to meet the domestic
requirement. This means the prices of coal can be increased or decreased
depending on cost of imported coal. However, it does not authorise 'under-selling' of imported coal at half the cost.
Independent directors say that Coal India must have a legislative
sanction, in case it gives subsidy on coal private to power producers. A mere
executive guideline (NCDP) cannot substitute for law.
An attempt was made by CEA to cover up the issue of subsidy
by saying that the losses incurred through selling imported coal at half the
cost may be made good by increasing the price of indigenous coal by around Rs
100 per tonne for all power producers.
But, independent directors feel that this is a thin cover as
CEA itself provides for passing through of the increased price of coal to the
electricity consumers.
“Ultimately, the cost of increase in prices is to be borne
by the domestic consumers of power, while the independent power producers will
get imported subsidised coal at half the cost,” sources said.
They feel that whenever coal is imported; it should be at 'cost plus price' and at the port of landing'. This means the buyer will have to
bear the charges of duty, freight and octroi in addition to cost of the coal.
Leave a Reply