Coal India changes the pricing policy of its non-coking coal
 Source : NewsBharati  Date : 10-Jan-2018

Kolkata, January 10: To push the revenue of Coal India, the state-owned company has hiked thermal coal prices for both power and non-power consumers with immediate effect. The board in its meeting approved the revision of the price.

The revision of the price became effective from January 9. The decision will be applicable to all the subsidiaries of Coal India including NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn approximately incremental revenue of Rs 1,956 crore for the balance period of the current fiscal.

Along with higher prices, analysts are expecting a volume growth of 5 percent for each of the next two fiscals. The raising price has resulted into the increase of this stock by 5.7%.

Power hikes will lead to increase in electricity tariff. The coal price increase would result in 30-50 paise/per unit rise in power tariff.

“In a paradigm shift, CIL changes the pricing policy of its non-coking coal from “Band Based Pricing System” to “Per unit of calorific value of coal (Rs/Kcal)”, a global system of coal pricing, to make it more transparent, simpler and consumer friendly,” CIL said.