Power firms may benefit from Govt move

Power companies such as NTPC, Reliance Power, Tata Power, Adani Power, GMR Infrastructure, Lanco Infratech, KSK Energy Ventures and Indiabulls Power may react positively to the decision of the Cabinet Committee on Economic Affairs (CCEA) to allow them pass on imported coal costs to consumers. The pass-through mechanism will be applicable for nearly 78,000 MW of thermal stations commissioned after 2009, of which, 38,000 MW is new capacity. Under the proposed pass-through mechanism, the entire additional cost of imports would be passed on to the consumers, against the averaging of prices of imported and domestic coal under the earlier planned price-pooling mechanism. Power producers until now were not allowed to fully pass on the cost of coal imports they resorted to for meeting shortfalls from domestic mines.

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