Coal India Limited (CIL) has improved prices of Non-Coking Coal produced by its subsidiary Western Coalfields by 10 per cent. As a result, WCL will earn approximately an additional revenue of INR 140 crore (1.4 billion) for the balance period of FY14.

Western Coalfield Limited (WCL), a subsidiary of CIL, has improved its prices by 10 per cent. This will be applicable for thermal Coal of band G-6 to G-17 under the Gross Calorific Value (GCV) mechanism.

G-6 category of Coal includes those with GCV of 5,500-5,800 kcal/kg, while G-17 includes 2,200-2,500 kcal/kg. Most power plants consume Coal between G-11 to G-14 bands costing between INR 500-650/MT.

Non Coking Coal price was increased by CIL for all subsidiaries in May, 2013 which is expected to earn an additional revenue of INR 2,119 Crore (21.19 billion) in FY 14.

“We had increased the price of Non-Coking Coal on Western Coalfields by 10 per cent. Last time, during rationalization in the end of February 2011, there was a substantial cut. In the process, it had some impact. So, now we have increased it by 10 per cent on WCL.” Coal India CMD S Narsing Rao said to media.

The new price will be effective from tomorrow, On account of increase, power producers will have to pay up to INR 30 per MT more for fuel sources.

In another decision taken by CIL on Monday to increase its charges for sizing and loading of Non-Coking fuel, commonly known as thermal coal, used by power plants.
Central Coalfields’ contribution to the fund would be about INR 248 crore (2.48 billion), while Bharat Coking Coal would get INR 103 crore (1.03 billion) additional revenue and Western Coalfields INR 22 crore (220 million).

CIL subsidiary Eastern Coalfields is the only arm which would incur INR 99-crore (990 million) loss due to price revision.

CIL accounts for over 80 per cent of the domestic coal production.

The Price hike may result in electricity rates going up by almost 6-8 paise per unit at the consumer-end. NTPC’s average cost of power is around INR 3 per unit, including around INR 1.8-1.90 of fuel cost.