Planning Commission Deputy Chairman Montek Singh Ahluwalia has said today that the price-pooling mechanism must be used in supply of coal for the power generation units in the country while admitting that the resolution to some of the issues might take longer time to be resolved.

While speaking at the India Energy Forum, he said a price pooling system must be adopted and indicated that the mechanism might be in place within this year. The Planning Commission is suggesting a pooling formula on prices by combining rates of imported and domestic coal for the Coal India Ltd o supply coal to power firms in the country.

"As far as gas pooling is concerned easy solution is price pooling. But the problem with gas price pooling is that gas also goes to fertilizer, I don't think that in the next 3-4 years these issues can be solved," he said.

CIL had asked authorities to give its view on the price pooling of coal. The board of CIL had earlier approved a modified fuel supply agreement (FSA) without price-pooling that included 65 per cent domestic coal and 15 per cent imported coal. The prices were determined on cost plus basis.