Coal India may increase prices of coal produced by two of
its subsidiaries following an impact analysis of the system of grading coal
based on gross calorific value, or GCV, implemented in January.
The two subsidiaries are Western Coalfields (WCL) and
Eastern Coalfields (ECL).
“The decision to rationalise prices of ECL and WCL has gone
to the board, and it has authorised me to do that. When GCV was introduced, WCL
and ECL got hit for some grades. We will rectify that soon, within a few days,” said Narsing Rao, chairman-cum-managing director of Coal India.
ECL is likely to see an increase in the prices of coal being
supplied from its Rajmahal mines, said a Coal India official present at the
meet. “While ECL has made significant profit of Rs900 crore, its Rajmahal mines
operations are losing money.”
The Coal India chief, however, refused to comment on the
exact quantum of the price hike on the anvil. “I haven't looked at the numbers what they will be post revision. Unless I look at them, I can’t comment,” he
said.
Overall, Coal India's prices have not gone up by more that
3-4% on an average across its mining subsidiaries following implementation of
GCV-based pricing mechanism, said Rao.
On e-auctions, the chairman said Coal India would try not to
cut down on the high-margin business. “We plan to maintain the same level of
quantity for e-auction this year, by offering more and more out of the
unliquidated stock, particularly those available at points where coal is not
easily loadable.”
Source: DNA
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