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CIMA Gallary

Push for costlier fuel

New Delhi, Feb. 7: The Planning Commission today pitched for hiking the price of diesel, domestic LPG cylinder, coal and natural gas.

“Indian coal is under-priced, some part of coal is sold through auction and the auction price is 30-40 per cent higher. If this under-pricing is not altered, incentives to invest have to be maintained by giving budgetary sops which is simply not feasible,” Planning Commission deputy chairman Montek Singh Ahluwalia said.

The CCEA (cabinet committee on economic affairs) has given in-principle approval to coal price pooling, which aims to average out domestic and international prices to make imports viable. Price pooling is likely to help new power plants, which depend mostly on costly imported coal.

According to Ahluwalia, the management of energy resources is a big challenge. “Rich countries can afford to have energy subsidies because it will not prevent them from becoming richer. But poor countries that want to get rich cannot continue with it,” he said.

 
 
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