The Hindu Business Line : South Eastern Coalfields mulls price increase

SOUTH Eastern Coalfields Ltd (SECL), a profit-making subsidiary of Coal India Ltd (CIL), is contemplating revising coal prices even as it posted a record profit before tax and dividend of Rs 1,150 crore on a total production of 71 million tonnes (mt) during the year ended March 2004.

Last year, the profit before tax was Rs 866 crore and production was 67 mt.

The Chairman and Managing Director, Mr M.K. Thapar, told Business Line that the proposal to revise prices would soon be examined by the company's board.

While justifying the need for a price revision, Mr Thapar said that the company had not revised prices for the last two years even though it had to bear additional input cost on production and also make a provision of about Rs 350 crore on account of wage revision. Moreover, he felt that the company should take advantage of the good market situation to garner resources for the future projects.

During the year, the company has been able to realise sales dues to the tune of about Rs 800 crore from the Madhya Pradesh State Electricity Board, the Gujarat State Electricity Board and the Maharashtra State Electricity Board. The entire amount was realised through the securitisation route. Total outstanding dues for the company had now come down to about Rs 435 crore as on March 2004 from about Rs 1,486 crore on April 2003. He said that total sales turnover would be about Rs 5,300 crore.

Though a substantial quantity of its non-coking coal production contain high ash, the company has no plans to set up coal washeries to wash coal for long distance bulk consumers.

However, Mr Thapar said that the company would act as a facilitator to help set up coal washeries by private parties on behalf of the bulk coal consumers.

At present, two private washeries were washing about 9 mt of raw coal, while a few proposals were received by the company for setting up new washeries.