Pooling of price of coal: Proposal may be dropped altogether

In view of the complexities involved in the implementation of pooled price of domestic and imported coal, it is being debated, at the ministerial level, to drop the proposal altogether. Instead, it has been suggested to create a fund through the levy of taxes on the sale of indigenous coal and use it to provide subsidy to the consumers going for imported coal.

•  Under this mechanism, CIL would import and sell coal in a transparent manner to the consumers through contractual arrangements on a cost-plus basis. This price would be based on the actual procurement price of imported coal, associated cost and a pre-determined margin.
•  CIL, in its board meeting, had also represented against pooled price of coal alleging that it would lead to cross-subsidization by the consumers using domestic coal.