- Slight y-o-y rise in WPI prompts price revision
- Higher-grade prices to see structured increment
Coal India Limited (CIL) has announced a revision in modulated coal prices for the Non-Regulated Sector (NRS), effective 1 April 2026, in line with its WPI-based indexation mechanism.
The revision follows the company’s framework of linking coal prices to the Wholesale Price Index (WPI) to reflect inflation trends. As per the latest update, WPI increased from 155.7 in December 2024 to 157.2 in December 2025, marking a 0.96% rise; however, with only 25% of this change factored in, the net impact on modulated prices stands at a marginal 0.24%.
Notably, Coal India Limited (CIL) conducts annual revisions of its coal prices based on the movement of the Wholesale Price Index (WPI). This mechanism is known as the “Modulated Price” system, which was introduced to align coal auction prices with inflationary trends.
Minimal price impact
The capped indexation has resulted in negligible changes across coal grades, leading to a stable pricing environment. Prices of key non-coking coal grades (G1 – G17) remain largely aligned with earlier levels, with only minor upward revisions.
CIL maintains WPI-linked pricing structure, ensuring stability for coal consumers
CIL has reiterated that the modulated price will continue to serve as the base price for Non-Regulated Sector (NRS) linkage auctions and e-auctions, with the final payable price being the higher of the indexed price or the notified price.
Auction premiums will continue to be charged as a percentage over the modulated price, while any source-specific add-ons will be determined separately by respective coal companies as per approved modalities.
Additionally, for higher-grade coal, prices will see a structured increment — coal with GCV exceeding 7000 Kcal/kg will attract an increase of INR 100/tonne (t) for every 100 Kcal/kg (or part thereof) above the 6700-7000 Kcal/kg band. The current modulated prices have been computed excluding add-ons, which will be applied separately.
Overall, the marginal revision reflects soft inflationary pressures in the coal sector, ensuring continued price stability for key consuming industries such as power and sponge iron, while limiting cost escalation across downstream sectors.
For coking coal and washed coal, subsidiaries have been directed to adopt the same WPI-linked methodology, incorporating applicable add-ons in price calculations.
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