Tuesday, 28 June,
Indian power developers require government’s intervention to tackle the rising prices of imported Coal. Indonesia, the largest coal supplier, has come up with a new law that is making imports economically unviable. Indonesia has said it would not allow exporting companies to sell coal at prices below notified rates.
Association of Power Producers, which includes 13 private companies, have asked power ministry to set up an expert committee to find out the appropriate solution to tackle the rise in imported rates. The body representing companies include TATA Power, Reliance Power, Adani Power, Lanco Infratech and Essar Power.
Power projects in India are dependent upon imported coal so a hike in prices of imported coal might affect these projects. Besides, the country’s dependence on imported coal, prices are expected to increase, Indonesia & Australia contributes about 55% of coal, which India imports. The change in coal pricing method is likely to make coal costlier by Rs 1,500/MT for Indian power utilities. Until now, there was no regulation by Indonesian government on coal pricing.
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