30 % Imported Coal bound to raise power prices in India

Minister of Power Shri Sushil Kumar Shinde said today that "Coal is an issue, but we are not concerned with linkages for 80,000 Mw which is done, though it has 30 per cent import component,” said power minister Sushil Kumar Shinde." Under the 12th five year plan the Govt. plans to add 100,000 MW of capacity for which coal linkage is an issue of prime importance.

As of now the proportion of imported coal being blended is around 10% and there is increasing concern over rising power prices. State regulators are under pressure to make Discoms financially viable on one hand while on the other hand they are under political pressure to keep power prices as low as possible.

The increased proportion of imported coal is going to make the task of ascertaining financial viability of ailing Discoms even more difficult.