Companies

Coal India ups sizing, loading charges

| Updated on: Dec 16, 2013

Coal India Ltd on Monday increased its charges for sizing and loading of non-coking fuel, commonly known as thermal coal, used by power plants.

According to analysts, the move may result in electricity rates going up by almost 6-8 paise a unit at the consumer-end. NTPC’s average cost of power is around Rs 3 a unit, including around Rs 1.8-1.90 of fuel cost.

At its board meet here, CIL raised the sizing charges by Rs 12-25 a tonne, and loading rate by Rs 6 a tonne. These costs were last changed in 2009, said a CIL official.

“Due to this revision, Coal India will earn additional revenue of approximately Rs 197.21 crore for the balance period of 2013-14,” the miner said in a statement to BSE.

WCL hikes prices In addition, Western Coalfield Ltd (WCL), a subsidiary of Coal India, has hiked its prices by 10 per cent. This will be applicable for thermal coal of band G-6 to G-17 under the gross calorific value (GCV) mechanism.

“Due to this increase, WCL will earn approximately additional revenue of Rs 139.84 crore for the balance period of 2013-14,” said the BSE statement.

G-6 category of coal includes those with GCV of 5,500-5,800 kcal/kg, while G-17 includes 2,200-2,500 kcal/kg. Most power plants consume coal between G-11 and G-14 bands. This costs between Rs 500-650 a tonne.

After the recent announcement, power producers will have to pay up to Rs 30 a tonne more for fuel sources other than WCL.

WCL consumers will have to shell out more than Rs 60 for every tonne.

>siddhartha.s@thehindu.co.in

Published on December 16, 2013

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