Coal India cuts prices, revenue may be hit

Coal India Ltd (CIL), the world's largest coal miner, cut prices on Monday, a move that may weigh on the state-run company's revenue, a business daily reported on Tuesday, citing a senior government official.

"The exercise of reviewing the prices has been done. There is definitely a reduction," the newspaper quoted Alok Perti, coal secretary, as saying after a board meeting of the company. "Probably there could be a reduction in the revenue."

CIL spokesman did not respond for further comments.

CIL will implement a new pricing mechanism by the month-end but will ensure this will not result in higher prices for power producers, federal coal minister Sriprakash Jaiswal had said last week.