Coal prices under new CIL formula to be lowered by January 30

The Coal Ministry today said coal prices under
CIL's new pricing mechanism will be revised downward by the end of the current
month. 

“By the 30th (of January), the result would be in front of you. The coal
price would be revised downward,” Coal Minister Sriprakash Jaiswal told
reporters on the sidelines of the India Energy Congress. 

“Coal India (CIL) has made some mistake in the system adopted for pricing
of coal (under the new mechanism),” the minister said. 

The development comes in the wake of a Coal Ministry review meeting on the
pricing mechanism last week, where it was decided that a correction of coal
prices will be effected. 

The new pricing mechanism based on Gross Calorific Value (GCV), which
came into force on January 1, had led to an increase in rates of the fossil
fuel, though the Coal Ministry had indicated the new formula would be
revenue-neutral. 

Source: The Economic Times