Coal India board has approved a hike in non-coking coal prices for both power and non-power consumers with immediate effect. According to CIL sources, the average price hike will be around 10 per cent.

Due to this revision, the world’s largest coal miner will earn an incremental revenue of Rs 1,956 crore for the remaining period of the 2017-18 fiscal year, while the total revenue will be Rs 6,421 crore, the company said in a regulatory filing.

The price hike will be applicable to “all subsidiaries of Coal India, including NEC, for regulated and non-regulated sectors”, the filing said.

CIL shares soared as much as 7.7 per cent to Rs 310 on the BSE after the announcement. The state-run miner was compelled to revise prices in the wake of rising costs which was a drag on its profitability in the last few quarters.

CIL had last revised the prices for fossil fuel by 6.3 per cent on an average in May 2016 that helped the miner to collect additional revenue of Rs 3,234 crore in 2016-17.

Coal India had slapped a levy of Rs 50 per tonne as coal evacuation charges in early December which is set to earn the public sector miner Rs 2,500 crore every year. In the remaining part of 2017-18, additional revenue from evacuation levy will be Rs 800 crore.

The recent wage revision had pushed up its annual employees cost by additional Rs 5,600 crore. Meanwhile, Coal India also said sales bills will be raised on GCV (kcal/Kg) basis with effect from April 1, 2018 and the present mode of raising bill would continue till then.

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