Utkal Chamber of Commerce (UCCI), an apex body of industry representatives in the state, opposed the Coal India's (CIL) move to shift to a new pricing mechanism for thermal coal as they feel it has increased the prices of certain grades by up to 150 per cent.
“Using its monopolistic position in Indian coal market CIL has resorted to price increase within 10 months, which made the coal price to go up three times of what it was one year back”, president of Utkal Chamber of Commerce and Industry (UCCI) Ramesh Mohapatra told media persons here.
The new mechanism, opposed by the industry body, is based on Gross Calorific Value (GCV), under which prices are linked to the actual calorific value or quality of coal. The earlier mechanism was based on the Useful Heat Value (UHV) grading system deducted ash and moisture content from the standard formula.
Mohapatra said switching over to GCV has led to a spurt in prices, particularly C to G grade coal ranging from 75 to 150 per cent.
The chamber said that the CIL decision is in contravention to New Coal Distribution Policy, 2007, which has placed the captive power plants in a disadvantage position.
“Coal prices for the Captive Power Plants (CPP) after implementation of the new policy will increase by 83 per cent,” added Mohapatra.
UCCI, besides opposing the CIL’s move, also expressed concern over hike in water cess.
The amendment in Orissa Irrigation rules and consequential exorbitant hike in water fee made by the state water resource department with effective from October 1 2010 has spelt disaster for the industries in the state, said S Jagdev, vice president, UCCI.
The water fee has gone up 82 times after the amendment. Now the state is charging, Rs 4.20 to Rs 9 per cubic meter compared to earlier charges ranging from Rs 0.11 to Rs 0.55, alleged the industry body.
Similarly, implementation of mandatory purchase of renewable energy certificates for captive power plants was opposed by UCCI.
