Press Esc to close
Wednesday 28 September 2016
News updated at 10:30 PM IST
Weather
Max: 29.3°C
Min : 20.9°C
In Bengaluru
Generally cloudy

Government agrees hike in coal-based power costs

June 21, 2013, Reuters
The sun sets behind electric pylons in Allahabad February 22, 2006.  Credit: Reuters

India has decided to allow power companies to pass on the costs of foreign coal to customers, a minister said, a move likely to boost imports and investment in power generation, but bringing higher energy prices to consumers.

A proposal to raise gas prices has been deferred, information and broadcasting minister Manish Tiwari told reporters after a cabinet meeting. India is the world's third-largest producer of coal and more than half the country's power comes from burning the fuel, but domestic output falls short of demand, triggering frequent and lengthy power cuts in Asia's third-largest economy.

It also means power producers have to turn to expensive coal imports and until now, they have not been able to pass these costs fully on to customers. The move comes as the coalition government is trying to tackle a raft of economic reforms, some of them leading to unpopular price rises and some giving benefits to powerful vote banks ahead of state elections this year and national elections in 2014.


Go to Top

Photo Gallery
Kane Williamson selects a suit length at a Garments shop in Kolkata on Wednesday...

Kane Williamson selects a suit length at a Garments shop in Kolkata on Wednesday...

Women practice Gujarati 'Garba' as they celebrate for the upcoming 'Navratri festival'...

Women practice Gujarati 'Garba' as they celebrate for the upcoming 'Navratri festival'...

A submerged temple after opening of Bargi dam gate at Gaurighat in Jabalpur on Wednesday...

A submerged temple after opening of Bargi dam gate at Gaurighat in Jabalpur on Wednesday...

Pranab Mukherjee  during a visit to Kedarnath Temple at Kedarnath in Uttarakhand on Wednesday....

Pranab Mukherjee during a visit to Kedarnath Temple at Kedarnath in Uttarakhand on Wednesday....

Bollywood actress Kangana Ranaut attends the GQ India Men of the Year Awards 2016...

Bollywood actress Kangana Ranaut attends the GQ India Men of the Year Awards 2016...

Ranveer Singh attends the GQ India Men of the Year Awards 2016, in Mumbai...

Ranveer Singh attends the GQ India Men of the Year Awards 2016, in Mumbai...

Prabhu Deva and actress Tamanna during a promotional event for their upcoming film Devi...

Prabhu Deva and actress Tamanna during a promotional event for their upcoming film Devi...

Actor Sushant Singh Rajput, Disha Patani and Kiara Advani talking to media person....

Actor Sushant Singh Rajput, Disha Patani and Kiara Advani talking to media person....

Sourav Ganguly and Indian cricket team coach Anil Kumble during a practice session...

Sourav Ganguly and Indian cricket team coach Anil Kumble during a practice session...

Ajay Devgn with his daughter Nysa during a campaign in Mumbai...

Ajay Devgn with his daughter Nysa during a campaign in Mumbai...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523