Wednesday, April 20,
The Coal Consumers’ Association of India (CCAI) has demanded a roll back in the recent price hike by Coal India on Feb 27 of this year.* It also looks forward to seek the intervention of Prime Minister Manmohan Singh in rolling back the price hike.
“Coal India Limited increased A and B grades coal prices sharply which beat-up the major sectors of economy especially steel and cement.”
“If the price hike is not rolled back then coal cost of cement industry would be increased by 40 percent. A 4 million tonnes cement plant will have to incur Rs.125 crore more due to the coal price hike. Overall the total cost of cement industry will be increased by 15 to 20 percent and there will be price hike of Rs.9 to Rs.10 per bag,” said CCAI president P.K. Chand.
The basic reason behind the price hike by Coal India Limited is that the price hike is to set the prices of domestic coal to the international standard, which to our mind is not correct. Because there are basic differences between domestic coal and imported coal. Quality of imported coal is very consistent. But in India the coal is not of the international quality,” said Chand, who is also the chief financial officer of Birla Corporation Limited.
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