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| Coal India may hike coal prices by 10% |
| Press Trust of India / New Delhi Aug 24, 2009, 21:40 IST |
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Amid widening gap between domestic and global prices, state-owned Coal India (CIL) may hike coal prices by about 10 per cent across-the-board soon.
CIL has not hiked prices since 2007 and this has resulted in huge difference in prices in the domestic market vis-a-vis global market, sources said.
They further added that the PSU is also reeling under huge financial burden of over Rs 4,000 crore due to wage revision.
"CIL is considering to raise the coal prices by about 10 per cent across-the-board soon," sources told PTI.
Coal India Chairman Partha S Bhattacharyya could not be contacted. Ministry officials declined to comment on the issue.
If increased, this will result in additional costs for cement, power and steel companies as coal is key component for them.
Coal prices range between $16-35 (Rs 770 and Rs 1,700) a tonne. Going by the expected 10 per cent hike, the prices will go up to $3.5 per tonne or (Rs 175 a tonne).
The Rs 4,000 crore coal-wage pact between CIL and its workers is also one of the major factors behind the move, sources said.
CIL reported a sharp drop in retained earnings because of the wage-built annual impact. The company posted a profit of Rs 300 crore on a turnover of about Rs 45,000 crore last year.
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