Domestic Thermal coal has become costlier in India.
State-run, Coal India Limited (CIL), has raised its coal prices by approximately 6.29% with effect from today. The decision to hike the price was finalized in a board meeting on Saturday, with the intent of raising its revenue by around INR 3,234 crore in the current fiscal.
The price hike will be applicable for the regulated as well as non-regulated sectors. Moreover, CIL has also set a differential price for the non-regulated sector, that is lower by 20% over that for the regulated sector, for the G6 to G17 grades, produced by CIL subsidiaries.
Availability of domestic coal has increased substantially in the country as domestic production has been improving in successive fiscals.
| Fiscal | CIL Production(in MnT) |
| FY16 | 536 |
| FY15 | 494.23 |
| FY14 | 462.53 |
Source: SteelMint Research
CIL has set a target of producing 598 MnT in the current fiscal.
Leave a Reply