Press Esc to close
Saturday 20 December 2014
News updated at 1:13 PM IST
Weather
Max: 24°C
Min : 18.2°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
People takes protection against cold with woollens...

People takes protection against cold with woollens...

helicopter following a crash during the men's World Cup Downhill skiing...

helicopter following a crash during the men's World Cup Downhill skiing...

a migrant carries a tent trough a field...

a migrant carries a tent trough a field...

King penguins stand on the edge of their tank ...

King penguins stand on the edge of their tank ...

Mount Gamalama spews volcanic ash as it erupts...

Mount Gamalama spews volcanic ash as it erupts...

Kashmiri students wearing shrouds with red colour

Kashmiri students wearing shrouds with red colour

Staff dressed as Santa Claus try to squeeze into a car at a theme...

Staff dressed as Santa Claus try to squeeze into a car at a theme...

The VIP flyover wears a deserted look during Taxi strike in Kolkata...

The VIP flyover wears a deserted look during Taxi strike in Kolkata...

Children during a Christmas celebration at National Centre for Performing Arts ...

Children during a Christmas celebration at National Centre for Performing Arts ...

Hero Action Team during a cycling expedition at Kufri...

Hero Action Team during a cycling expedition at Kufri...

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