Get ready to shell out more on your electricity bill. With the new pricing norm set by Coal India for pricing of coal, India's largest power producer NTPChas signaled a hike in tariff rates by as steep as 30-40%. Coal India has unveiled a new pricing system by reclassifying different grades of coal and raising their number from 7 to 17.
Arup Roy Choudhury, chairman and managing director at NTPC opposes this move by Coal India and appeals to Power Minister and Coal Minister to look into it. Commenting on financial health of State Electricity Boards and payment cycle, he clarified SEBs are paying regularly to NTPC and there are no defaults.
Coal India has recently expressed their intent to go in for Gross Calorific Value based pricing. We have given our feedback to them even though Coal major feels it is going to be cost neutral. But it is not exactly going to be cost neutral, as there will be substantial increases in tariff and therefore we have not accepted their proposition. We have taken it up with Power Ministry and Coal Ministry, said Mr Arup Roy.
It will be a little premature for me to comment but on an average we feel NTPC power might go up by 30-40%, he further added.
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