Coal India hikes price of certain grade of coal

Company has increased the price of coal produced from Rajmahal mine of Eastern Coalfields Ltd to Rs 390 per tonne

State-owned Coal India (CIL) has increased the price of a certain grade of coal from one of its mines in Godda district of Jharkhand.

The increase has been with effect from April 1 as per the decision taken by the Coal India board, sources said.

"The CIL board in its 306th meeting held on March 20, 2014 has approved fixation of add-on price in respect of coal produced from Rajmahal mine of Eastern Coalfields Ltd at Rs 390 per tonne in place of existing Rs 300 per tonne.

"This is in order to rationalise the price of coal produced from Rajmahal mine of Eastern Coalfields due to reclassification of Grade of Rajmahal mine of Eastern Coalfields Ltd and price adjustment," according to a CIL Official.

Coal India had in December last year hiked prices of non-coking coal produced by its subsidiary Western Coalfields by 10%.

"...Last time, during rationalisation in the end of February 2011, there was a substantial cut. In the process, it had some impact. So, now we have increased it by 10% on WCL (Western Coalfields)," Coal India CMD S Narsing Rao had said earlier.

On account of increase, Western Coalfields will earn an additional revenue of Rs 139.84 crore for 2013-14, CIL had said in a filing to BSE.

Minister of State for Coal, Pratik Prakashbapu Patil, had said in a written reply to Lok Sabha in December 2013 that Coal India Ltd may get an additional revenue of Rs 2,119 crore in FY'14 on account of revision in dry fuel prices.

CIL had revised the prices of all grades of coal, barring three, for all its eight producing subsidiaries with effect from May 28, 2013.

CIL accounts for over 80% of the domestic coal production.