Coal To Be Priced According To The Heating Property Of Fuel


New Delhi: Coal India Ltdhas tweaked its pricing regime for non-coking coal "in alignment with global practices.

In a statement issued on Wednesday, CIL said coal will be priced according to the heating property of each Kg of the fuel -- referred as per unit of calorific value of coal, or Kcal/Kg, in industry parlance -- instead of a band-based pricing followed till now.

The new policy categorises coal under three groups to "simplify" things for consumers, "rationalize" prices and bring "transparency". The statement said consumers will also save on costs under the new regime.

The new price chart issued by CIL shows coal grades used by power stationsrising by 13% to 18%. This will push up generation cost between 4 paise and 9 paise per unit for power plants, depending upon their location and the fuel grade being used. On an average, consumers will have to pay 9 paise per unit more for electricity since fuel costs are passed on by generators.

CIL is likely to mop up Rs 1,950 crore additional revenue in the remaining period of the current fiscal and Rs 6,400 crore in 2018-19 under the new pricing regime. This is equal to the additional outgo on higher wages to employees.

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