Coal India (CIL) has increased prices by 4.7 per cent on average, a move that power producers say is likely to lead to an increase in power tariffs by 7 paise per unit to 45 paise. CIL on Tuesday reduced prices of two premium varieties of coal by 12 per cent while increasing prices of the rest, barring one, by 10 per cent. It had last increased prices in January 2011.
CIL Chairman S Narsing Rao said that due to the rationalisation of coal prices, there will be an approximate additional revenue of Rs 2,119.36 crore for the balance period of FY2013-14 while the yearly additional revenue will be around Rs 2,511.58 crore.
CIL has reduced prices of the two premium categories to bring them on a par with international prices, which have tanked. However, in order to make the price decrease revenue neutral and cover rising expenditure over the last few months on account of salary rise and diesel costs, CIL has increased prices of the rest, he added.
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