A study would be conducted by The Energy & Resources Institute (Teri) to assess negative impact of coal mining and state expenditure on administrative machinery for approval and addressing externalities.

For this purpose, a team of officials from the institute would visit Odisha. Simultaneously, the institute would also study the impact of allowing free power at variable cost from coal based power plants in the host state.

States like Odisha seek a certain share of power produced from power plants using coal mined in the state. Odisha argues that states consuming power and coal provided by the host state get benefited, the host state gets a nominal advantage of limited employment opportunity and also a very low royalty on coal.

The Planning Commission had urged Teri conduct a study on the matter with due consultation from various states.

The institute sought information from the state government on various facets of the power sector like capacity of coal-based power plants, state share of power from these plants, cess (if any) levied on the power plant, current rate of electricity duty on consumption and tariff at which electricity is supplied from the power plants.

Earlier, Odisha demanded 25 per cent free power from coal-based power plants and 33 per cent free power from power plants based on coal washery rejects.