The company will implement the new pricing mechanism latest by April this year, Coal India chairman Gopal Singh told PTI.
The new mechanism will compute prices on every unit of gross calorific value (GCV) of coal, doing away with the grade policy at present.
"You pay exactly what quality you get," Singh said.
Explaining, the new policy, he said for each GCV, 48 paisa will change either upward or downward from the median of each grade that the company has proposed.
CIL has 17 grades from 2000 to 7000 GCV with difference of 300 GCV between two grades.
CIL hopes that the new pricing policy will also have a positive impact on coal production.
"Earlier, mining workers were not encouraged to cross a grade which was difficult but all miners will now be encouraged to produce more," Singh said.
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