India allows power firms to pass on imported coal costs
New Delhi: India has decided to allow power companies to pass on the costs of foreign coal to customers, a minister said on Friday, a move likely to boost imports and investment in power generation, but bring higher energy prices to consumers.
However, a proposal to raise gas prices for the first time in three years has been deferred, information and broadcasting minister Manish Tiwari told reporters after a cabinet meeting.
A gas price rise to near world levels would have fuelled investment in the sector and made liquefied natural gas (LNG) imports from major producers like Qatar more attractive.
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.