Question : Price Fixation of Coal

a. whether it is necessary to leave the fixation of coal price to the market;
b. if so, whether the energy policy of the Government needs such fiscal policies which take care of the external factors; and
c. if so, the details thereof?

Answer given by the minister



MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES
(SHRI PRALHAD JOSHI)

(a to c) Nearly 65% of the total supply of coal is made to the power sector. The power tariff is regulated by independent authorities. It has social as well as economic dimensions. The policy relating to pricing of coal is primarily guided by these factors.

Pursuant to Colliery Control Order, 2000 dated 01.01.2000, the prices of coal have already been decontrolled. Since then, the prices of coal, produced by the Coal India Limited (CIL) are notified by CIL and its subsidiaries after obtaining approval from the Board of Directors. Around 10% of the total coal, produced by CIL, is sold through e-auction mode at market driven prices.

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