The CIL board is likely to meet today to examine the new
coal pricing mechanism, a top company official said.
“The talks are underway. We have been asked to work out on
prices of coal (under the new pricing mechanism). We will take it to board on
January 30 as it is the deciding authority,” Coal India (CIL) Chairman and
Managing Director N C Jha said.
Coal Minister Sriprakash Jaiswal had said earlier that “CIL
has made some mistake in the system adopted for pricing of coal (under the new
mechanism)”.
Coal India shifted to a new pricing mechanism from January
1. Under this system, prices have been linked to the actual calorific value or
quality of coal.
The new pricing mechanism resulted in an increase in rates
of the fossil fuel though the Coal Ministry had indicated the new formula would
be revenue neutral.
Consumers across sectors including power, cement, aluminium
and steel have opposed the new method as they feel that prices have risen
substantially and this will necessitate in a price increase in their own
respective commodities.
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