State-owned Singareni Collieries Company Limited (SCCL) has increased the prices of power grade coal by 15 per cent. The increase came into effect from September 12.
The price was increased on coal of G 6 to G 17 grades and this has been confined only to the supplies to power generation companies, according to a company spokesperson. The hike comes after a gap of five years in some of these grades and nine years in others, according to the official.
“The decision was overdue as Coal India had increased the prices in June this year. Since we increase the price of coal supplies to all the non-power customers routinely every year, the present hike will only impact NTPC, APGenco, Mahagenco and others,” the official told Business Standard.
Singareni expects to earn an additional Rs 300 crore for the remaining part of the current financial year from this hike. Of this, APGenco and NTPC are expected pay Rs 120 crore and Rs 80 crore respectively. The average increase in price is in the range of Rs 100-120 per tonne.
The effective sale price of the above grades will now be in the range of Rs 1,000-1,200 at the company end but it will be as high as Rs 1,700 per tonne, including the royalties and taxes, at the consumer end. About 50 per cent of the coal produced in Singareni mines comes under these grades, the official said.