Coal ministry rules out hike in coal prices

The government on Thursday said there is no proposal to increase coal prices, even as Coal India has adopted a new system for pricing and excise duty on dispatches of fossil fuel has been raised.

“As of now, a rise in the prices of coal is not under consideration,” Coal Minister Sriprakash Jaiswal said.

Coal India, however, said that the burden on account of increase in duty will be passed on to the consumers, adding that it would be negligible. “The increase will be passed on to the consumers. It will be negligible,” Coal India Chairman and Managing Director N C Jha said.

The Coal ministry had increased stowing duty — levied for rehabilitation, stowing and infrastructure development of abandoned mines — from Rs 10 a tonne to Rs 20 a tonne. The step follows a Cabinet decision last month to raise the cap on Stowing Excise Duty to Rs 50 a tonne from Rs 10 a tonne.