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Coal India hikes prices of Western Coalfields produce by 10 per cent

Coal India hikes prices of Western Coalfields produce by 10 per cent

Coal India on Monday hiked prices of non-coking coal produced by subsidiary Western Coalfields by 10 per cent, which would earn it Rs 140 crore in additional revenue this year.

Cola India Ltd (CIL) had raised prices of non-coking coal produced by all other subsidiaries in May which is expected to fetch an additional revenue of Rs 2,119 crore this year.

"We had increased by 10 per cent (price of non-coking coal on Western Coalfields. Last time, during rationalisation in the end of February 2011, there was a substantial cut. In the process, it had had some impact," Coal India CMD S Narsing Rao told reporters after the board meeting that lasted for about seven hours.

"So, now we have increased it by 10 per cent on WCL (Western Coalfields)."

The price hike will take effect from Tuesday. On account of this increase, Western Coalfields will earn additional revenue of Rs 139.84 crore for 2013-14," parent Coal India said in a filing to the BSE.

In another decision, the board approved revision of raw non-coking coal sizing charges and rapid loading charges with effect from December 17. This hike would fetch an additional Rs 197 crore to the company this year.

"This will be applicable to all subsidiaries of Coal India Limited for regulated and non-regulated sectors," the filing noted.

The largest revenue contributor to CIL on account of price revision would be Mahanadi Coalfields which is expected to contribute Rs 686 crore, followed by Rs 664 crore from Northern Coalfields and Rs 495 crore from South Eastern Coalfields.

Central Coalfields' contribution to the kitty would be about Rs 248 crore, while Bharat Coking Coal would get Rs 103 crore additional revenue and Western Coalfields Rs 22 crore.

Coal India subsidiary Eastern Coalfields is the only arm which would incur a loss of Rs 99 crore due to the price revision.

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