The Coal India management on Friday failed to convince its
board of directors on the feasibility of a price pooling mechanism to fulfil
its proposed supply commitments to power plants commissioned since April 2009.
Independent directors played a key role in opposing the proposal.
Proposed by the Union
Government, price pooling would largely help the new coastal power plants,
mostly in the private sector, get imported coal at a subsidised price. The
subsidy on imported coal should be recovered through an increase in prices of
domestic coal, mostly consumed by the Central and State-owned utilities.
“The board has asked the management to come back with a
business model (on price pooling),” Chairman and Managing Director Narsing Rao
told newsmen after a marathon seven-hour board meet.
Asked if there was any opposition to the “price-pooling” proposal, Rao said: “It’s an internal matter.”
Source: Business Line
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