Coal India Ltd (CIL) has approved to enhance non-coking coal price by INR 10/t for its customers belonging to both power and non-power as contribution towards the corpus of Coal Mine Pension Scheme. This would come into force from 1 Dec ’20.
Although no change has been carried out for notified price of various non-coking coal which were last revised back in Jan ’18, the latest amendment would slightly increase the burden on coal customers.
Notably, in order to relief the buyers on the onset of COVID-19, CIL had scrapped upper cap on notified price during the first half of this fiscal. It was only in Oct ’20, the company had introduced 10% premium over notified price for evaluating the reserve price in auctions.
Moreover, from Nov ’20 onward, it had agreed upon the earlier practice of vesting power to individual subsidiaries for affixing the upper cap as per market conditions.
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