CIL hikes coal prices by 15 per cent

Coal India will raise the price of coal on an average by about 15 per cent to bring in some parity between domestic and international prices. CIL is selling coal at a price lower by 50 per cent compared to the imported price. CIL has decided to raise prices every 18-20 months after the next round. The next round of price hike is likely to cover all sectors. Besides salary hike and inflation, it will take care of the effect of a bill that proposes sharing 26 per cent of profits with the project-affected population. Prices of premium grades of coal—A and B—will be offered at a 15 per cent discount on the global spot prices. The benchmark price will be decided through a complex formula involving calorific value of coal as well as on the basis of Indonesian coal spot prices. The other grades—C to F—will be 30 per cent dearer than earlier notified.