Coal price hike to cost CESC Rs 300 cr

The increase in coal prices by Coal India Limited (CIL) will cost utility company CESC Ltd an additional Rs 300 crore annually which would translate to an increase in power tariff by about 50 paise per unit.

"CESC will file a petition with the regulatory commission for an interim hike to offset the impact on its bottomline," a top CESC official told PTI on condition of anonymity.

CIL, he said, did not gave the true picture saying power sector was pared. Infact the increase in price has impacted consumption of grade A and B coal under special agreement beside coal under Fuel Supply agreement, the official said.

"CIL had more than doubled the notified price of coal grade A & B and increased the price by 40% for coal under MoA," he said.

CESC's coal consumption of grade A & B and coal under special agreement is 20% of the total requirement of the mineral for its power plants.

"The impact on our generation will be around 35 paise per unit and taking into consideration increased price for imported power the total additional impact would be close to 50 paise," the official said.

CESC, he said, was preparing to submit a petition with the West Bengal Electricity Regulatory Commission which would be done in a month's time.