Coal consumers knock Centre's doors on price rise

Coal Consumers’ Association of India (CCAI) — which includes members from leading industries like cement, power, fertilizer, steel and iron, paper, chemicals and rayon — has demanded government intervention to provide relief after a sharp increase in coal prices by Coal India Ltd (CIL) recently.

The body has already approached Prime Minister, coal ministry and ministry of finance asking for remedial measures for the affected industries. “The price rise will add 15 to 20 per cent to the overall cost of steel and cement industry annually. We have written to Prime Minister and other ministries highlighting our problems,” said P K Chand, association President and Chief Financial Officer of Birla Corporation.

The state-run coal major had increased coal prices on February 27. “We will request the Prime Minister to form a committee to look into the uneven rise in prices. CIL has gone for differential pricing for regulated and non-regulated sector. They substantially increased the price of coal by 30 per cent for non-power sector from C grade downwards and more than 150 per cent in A & B grades across the board,” said Sashi Kumar, former CIL chairman and a member of the association.

This was the fifth price rise after coal prices were completely deregulated in January 2000. CIL had raised prices in February 2001, June 2004, December 2007 and October 2009 earlier. “This is going to impact Rs 9-10 on per bag of cement,” Chand added.

“We also want the implementation of a coal regulator to look into the prices in this sector. The association would also try to meet the Prime Minister in person to convey our grievances and if it is not heard, might think about passing on the burden to consumers,” he added. The major companies in the association include ACC Ltd, Birla Corporation., CESC, JK Paper., Kesoram Rayon, Rashmi Cement,Shyam Sel,Tata Sponge Iron., Tinplate Co India. and Steel.