Press Esc to close
Thursday 21 August 2014
News updated at 7:20 PM IST
Weather
Max: 30.8°C
Min : 20.7°C
In Bangalore
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
Ashok Leyland's new truck “Boss” gets launched in Ahmedabad ...

Ashok Leyland's new truck “Boss” gets launched in Ahmedabad ...

Sonal Chauhan walks the ramp at the Lakme Fashion Week Winter/Festive 2014 ...

Sonal Chauhan walks the ramp at the Lakme Fashion Week Winter/Festive 2014 ...

National Ambulance Service vans during their launch in Allahabad ...

National Ambulance Service vans during their launch in Allahabad ...

Veteran actor Dharmendra at an event in New Delhi on Thursday...

Veteran actor Dharmendra at an event in New Delhi on Thursday...

Solar Panel Scam accused, Saritha Nair at the Court in Coimbatore on Thursday...

Solar Panel Scam accused, Saritha Nair at the Court in Coimbatore on Thursday...

A woman with her child at a relief camp after Naga miscreants killed Assamese villagers ...

A woman with her child at a relief camp after Naga miscreants killed Assamese villagers ...

Fire fighters try to control a fire that broke out at a plastic godown at Kaduvetti ...

Fire fighters try to control a fire that broke out at a plastic godown at Kaduvetti ...

Emran Hashmi with Humaima Malik during a promotional event of their new movie in Bengaluru ...

Emran Hashmi with Humaima Malik during a promotional event of their new movie in Bengaluru ...

Bollywood actor Nargis Fakhiri during a promotional event in Bengaluru ...

Bollywood actor Nargis Fakhiri during a promotional event in Bengaluru ...

Shriya Saran walks the ramp at the Lakme Fashion Week Winter/Festive 2014 in Mumbai ...

Shriya Saran walks the ramp at the Lakme Fashion Week Winter/Festive 2014 in Mumbai ...

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