CCEA gave its nod to Price Pooling Mechanism on Coal to Control Prices of Coal
CCEA approved price pooling mechanism of coal on 5 Feb. 2012 and EGoM gave its nod for disinvestment of 9.5 percent stakes of NTPC.
The Cabinet Committee on Economic Affairs (CCEA) on 5 February 2013 gave its principle approval for the price pooling mechanism of coal. The mechanism includes cost blending of the domestic coal with the imported one to counterbalance price hike. Basic principles and parameters of the price pooling mechanism have been identified and a specific data on the same would be created by the Power and Coal Ministries.
The mechanism has been created before government decided to put on sale the 9.5 percent stake of the National Thermal Power Corporation (NTPC) from its present holding of 84.50 percent. The sale of the stake was approved by the Empowered Group of Ministers on disinvestment chaired by Finance Minister P Chidambaram on 5 February 2013. This disinvestment of NTPC would fetch about 12000 crore rupees for the exchequer.