Coal India needs tight quality control to profit from new pricing policy

Coal India officials are confident about maintaining a homogeneous grade to assure that the miner doesn't lose out on revenue

Coal India's decision to move to the global standard of charging customers based on the actual consumption of the gross calorific value (GCV) of coal may work in the company’s favour only if it can control quality and assure supplies in the higher bracket of a said coal grade. 

The current pricing mechanism, according to a Coal India official, is based on considering the mid-point of the GCV range of a particular grade. Thus, if the miner supplies coal that is higher than the mid-point GCV, it loses revenue. Under the new mechanism, this would change.

GCV is the amount