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Coal freight tariff rationalisation will have minimal impact on power

Rationalisation of the coal freight tariff by railways will have minimal impact on power tariff and the move would gradually lead to domestic fuel replacing imported coal, Power Minister Piyush Goyal said today. He was replying to a question on whether railways' announcement on rationalisation of coal tariff will have any impact on electricity tariff.  "No...nothing particular. We are doing so much of savings. There are many other ways. This small cost will not make any difference. Even if the coal price increases by Rs 100, there is an impact of a few paise," he said. "No...nothing particular. We are doing so much of savings. There are many other ways. This small cost will not make any difference. Even if the coal price increases by Rs 100, there is an impact of a few paise," he said.   

The minister further said: "There would be a small impact...They (railways) said it(the move)is revenue neutral. The freight of coal which had to go to far-flung places was more, they (railways) have reduced it. In far ahead places, the power is very expensive." Supporting the move, the minister said railways have reduced the freight for long distances so that the domestic coal becomes more viable in front of imported coal. "This year we are hoping that we reduce the coal imports by Rs 40,000 crore. That is our mission which is why railway freight rationalisation is a very positive step,"