State run miner Coal India Ltd (CIL) has added two new specifications of non-coking coal to the existing set of 17 grades that are available for commercial sale to customers.
These specifications fall below the lowest grade G17 and have GCV value in the range of 1,500-1,899 kCal/kg and 1,900-2,200 kCal/kg. The company has informed these would be kept outside the purview of gradation and termed as ‘Below Grade Coal’.
It may be noted that CIL has classified the different variety of non-coking coal that are found at its coalfields on the basis of gross calorific value (GCV). The premium grade-G1 comprises of coal having GCV in excess of 7,000 kCal/kg.
The succeeding grades are arranged in descending order of GCV value, with the lowest grade-G17 comprises coal having GCV in the range of 2,201-2,500 kCal/kg.
Notified price of coal
CIL has defined a fixed price for the existing non-coking coal grades, which is termed as ‘notified price’. This price is thereupon used for sales via fuel supply agreement and e-auction modes.
For the new coal specifications, the notified price is formulated as:
(a) Coal with GCV 1,900-2,200 kCal/kg at 95% of the existing notified price of G17
(b) Coal with GCV 1,500-1,899 kCal/kg at 90% of the existing notified price of G17
GCV in kCal/kg | Prices in INR/t
As per prevailing practice, two separate price lists have been provided for the power and non-power customers. One exclusively for Western Coalfields Ltd (WCL) and the other for the remaining coal-producing units of CIL.
The notified price for the newly-added coal specifications would be revised as per the formula, as and when the notified price of G17 is modified. Plus, the applicable taxes and levies would be charged over the price as per existing norms.
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