Eastern Coalfields, A Subsidiary Of Coal India, is Planning to Cut Prices Of High Grade Coal To Cope Up With The Lowering Demand of Domestic Coal Against Imported Coal.
Eastern Coalfields has decided to increase the prices of its low grade Coal by about 10% and decrease those of higher grades, to overcome the challenge of increasing demand of imported coal against domestic coal in Indian market .
Buyers are attracted towards imported coal as it is cheaper than that of domestic produce of high production cost. It is also exclusive of 25% cess and royalty of 25% paid to Government of West Bengal, sources claimed.
Coal India is yet to accept the proposal, and if CIL approves the plan, there will be a considerable rise in prices of low grade Coal. This will ultimately result into high power generation costs, as majority of power producers use low grade Coal for the same.
A similar price revision was made in 2013 when lower grades had witnessed increase in prices, whereas the prices of premium grades were decreased to match the prices of imported grades.
ECL this year has emerged as the top performer among the eight subsidairies of Coal India by producing 40 MnT against the targeted 38 MnT registering growth of about 11% over FY14.
– Sourced
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