This Article is From Apr 03, 2014

Coal India hikes price of certain grade of fuel

Coal India hikes price of certain grade of fuel

State-owned Coal India Ltd (CIL) has increased the price of a certain grade of coal from one of its mines in Godda district of Jharkhand, according to a source.

The increase has been effected from April 1 as per the decision taken by the Coal India board, sources said.

"The CIL board in its 306th meeting held on March 20, 2014 has approved fixation of add-on price in respect of coal produced from Rajmahal mine of Eastern Coalfields Ltd at Rs 390 per tonne in place of existing Rs 300 per tonne," according to a Coal India official.

"This is in order to rationalise the price of coal produced from Rajmahal mine of Eastern Coalfields due to reclassification of Grade of Rajmahal mine of Eastern Coalfields Ltd and price adjustment," the official said.

Coal India had in December last year hiked prices of non-coking coal produced by its subsidiary Western Coalfields by 10 per cent.    

"Last time, during rationalisation in the end of February 2011, there was a substantial cut. In the process, it had some impact. So, now we have increased it by 10 per cent on WCL (Western Coalfields)," Coal India CMD S Narsing Rao had said earlier.

On account of hte increase, Western Coalfields will earn an additional revenue of Rs 139.84 crore for 2013-14, CIL had said in a filing to BSE.

Minister of State for Coal Pratik Prakashbapu Patil had said in a written reply to Lok Sabha in December 2013 that Coal India may get an additional revenue of Rs 2,119 crore in FY14 on account of revision in dry fuel prices.

CIL had revised the prices of all grades of coal, barring three, for all its eight producing subsidiaries with effect from May 28, 2013.

CIL accounts for over 80 per cent of the domestic coal production.

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