Singareni Collieries Company Ltd (SCCL), the coal miner operating in Telangana, has increased the notified prices of its G5 to G8 grades which fall in the middle-tier of the non-coking coal classification.
Run of mines (ROM) prices of these grades have been hiked by INR 50/tonne (t) in each step as we move up from the lower gross calorific value (GCV) G8 coal to the higher G5 coal.
For instance, the price of G7 has been revised upward by INR 100/t (up by INR 50/t over G8). The price of G6 has been increased by INR 150/t (up by another INR 50/t over G7). For G5, the price hike is by INR 200/t, up by another 50/t over G6.
The revised prices have come into effect from 1 Aug’21.
* Price revision carried only for non-power sector.
The company has a separate set of prices for its power and non-power customers. Earlier, these prices were the same up to G8 grade for both the sectors.
However, in the latest revision, the price of G8 coal has been increased by INR 50/t for the non-power sector specifically, while retaining the same price from the previous price circular for the power sector.
For the remaining grades, the upward revision has been carried out by equivalent amount. Besides, the revised prices are similar across both sets of customers.
It is pertinent to note that the notified price forms the basis for fixing the reserve price of coals which are being offered in the regular auctions.
SCCL’s coal production
On the performance front, SCCL’s coal production has fallen by 8% m-o-m to 4.87 mn t in Jul’21 compared to 5.27 mn t in Jun’21. But, the output volume recorded a remarkable growth of 71% y-o-y against 2.85 mn t in Jul’20.
Overall, coal production in the first four months of FY’22 (Apr-Jul’21) increased 65% y-o-y to 20.44 mn t compared to 12.35 mn t in the corresponding period of FY’21.
Robust sales have also been registered in FY’22 wherein the company dispatched 21.73 mn t during Apr-Jul’21 against 11.38 mn t seen in Apr-Jul’20, thus attaining almost 99% of the target of 21.85 mn t set for the four-month period.
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