India: MCL Revises Surface Transportation Charge for Coal

Mahanadi Coalfields Ltd (MCL), the CIL subsidiary operating in Odisha, has revised the surface transportation charge (STC) which it charges from customers for transporting coal from mines to loading points.

The cost varied across the distance covered upon coal transportation, is primarily revised every six months in accordance with the decision taken by MCL’s officials.

The coal company has kept the transportation charges unchanged at INR 43/MT for the displace slab of 0-3 km.

For a distance of more than 3 km and not more than 10 km, the company has increased transportation charge by INR 4/MT to INR 74/MT. While for 10-20 km slab, an increment of INR 2/MT was recorded from the previous revision.

In cases, where coal is transported for more than 20 kms to the loading point, transport charges would be payable at actual basis, to be borne by the purchaser.

MCL has stated that the revised charges would be implemented from 00.00 hrs of 1 Aug’19.

STC-Surface Transportation Charge
Cost in INR/MT

Earlier, MCL had also hiked the reserve price for different coal e-auctions at the beginning of FY20. For Special forward and Exclusive e-auction, reserve price was increased from 10% to 20% over the CIL notified price. While for spot e-auctions, the upper cap on CIL notified price was raised from 20% to 30%.