State-owned Coal India Ltd will restructure coal
prices as it plans to switch over to the pricing based on the Gross
Calorific Value (GCV) method from January.
As of now it follows fixed pricing for seven grades of coal, based on Useful
Heat Value norms.
“We are moving for GCV based coal pricing from January, 2012 as directed
by the Coal Ministry,” CIL Chairman N C Jha said here.
Accordingly, the price of coal will be restructured but they will try to keep
the new regime as revenue neutral, he said.
Coal India has started the process to ascertain the GCV of coal of all mines
and buying adequate numbers of calorie measurement meters to do so.
When asked about what would happen to the coal price for the regulated sector,
Jha said, “We will only announce the GCV prices and the difference between
existing prices and that under the new norm would be treated as a discount or a
premium to be offered or charged to customers.
However, coal meant for e-auction will be sold at market
determined prices.
Source: The Economic Times
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