New Delhi: The companies which are purchasing cheaper coal from government have to sell electricity at lower rates to the consumers. The government is now devising a strategy to give direct benefit of cheaper natural resources to the consumers after Comptroller and Auditor-General of India’s (CAG) sharp reaction.

By initiating this issue Coal Secretary, AK Srivastava, wrote a letter to his counterpart in Power Ministry, P Uma Shankar last week. Presently, they are waiting for the advice of Central Electricity Authority of India (CEA) on this issue. The government had auctioned coal blocks to the private companies at throw away prices for which CAG has expressed their strong objection.

The CAG has further accused the government of neglecting the interest of common public in usage of natural resources. It also said that the benefit of cheap coal should be passed on to the customers and not to the private companies. After taking CAG’s note seriously, Coal Ministry told Power Ministry to think over this issue.

According to the highly placed sources, Srivastava in his letter to Power Secretary has already called for a need for strict regulatory and monitoring mechanism to ensure that the benefit of cheap coal be passed on to the customer upon which CEA’s advice is pending.

As per the statement of senior official, “After receiving the CEA’s advice on this issue they will consult with Law Ministry and give final tune to this planning. Now this is clear that the private companies which are getting cheaper coal will not be able to charge electricity prices according to their wishes.”


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