Singareni Collieries Company Ltd. (SCCL), Telangana-based coal miner, has increased its run-of mine (ROM) prices of non-coking coal from the Godavari Valley coalfields.
The upward revision has been carried out uniformly by INR of 100/t across the entire coal specifications ranging from G1 to G17. Here, G1 corresponds to the coal having upper limit of GCV in excess of 7,000 kcal/kg, while G17 is the lowermost limit of GCV in the range of 2,201-2,500 kcal/kg.
Post revision, the new set of prices vary in the range of INR 1,230-6,210/t for different customers. Prices have come into effect from 8 February, 2023. This is the first time prices were revised since June last year.
Similar to state-run miner Coal India Ltd. (CIL), SCCL uses these prices as the basis for coal sales against fuel supply agreements (FSA) and e-auction modes. However, compared to CIL, SCCL’s prices are higher.
It is should be noted that ROM coal prices of CIL subsidiaries are in range of INR 457-3,798/t.
Disparity in prices
Taking a cue from CIL, SCCL has also defined two separate set of coal prices for power and non-power consumers.
Since coal prices have a significant bearing on the economy and, in particular, thermal power generation, the power sector is provided coal at cheaper rates compared to the non-power sector.
A comparative analysis indicates that prices for high-calorific value (CV) coal ranging from G1 to G5 are the same for power and non-power consumers. For the below grades, there is a non-uniform gap between the two price sets.
In the case of mid CV G6-G7 coal, the difference is limited to INR 300/t, which widens in the range of INR 750-1,070/t for G8-G14 grades. The gap is again narrowed down to INR 350/t for the lower grades – G15-17.
Currently, SCCL supplies coal mostly to customers based out of Telangana and to some extent in the southern parts of the country and parts of Maharashtra.
SCCL has posted coal production and dispatches at 6.87 mnt and 6.84 mnt, respectively in January, 2023, which are the highest volumes ever seen in January. Driven by this robust performance, SCCL’s total production stood at 54.1 mnt in April 2022-January 2023, up 3% y-o-y. However, dispatches in this period remained marginally lower compared to 54.17 mnt a year ago.
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