Coal India Ltd slashed prices of two premium grade coal (G3 and G4) by 12.5 per cent and hiked prices of lower grades (G5 to G17), used in thermal power generation, by 10 per cent. The decision was taken a board meeting in the city on Monday.
The revised prices will be effective from May 28. CIL had last hiked prices in February 2011.
According to sources, this should enhance average price realisation of the company by 4.7 per cent.
According to a stock market filing, the “price rationalisation” should bring home additional revenue of Rs 2,119 crore during the remaining period of 2013-14. The annual impact, at an estimated 492 million tonnes of coal sales, is pegged at Rs 2,511 crore.
CIL is allowed to sell fuel with heat value over 6101 kilo calorie per kg at import parity price. The company was under pressure to reduce the price of top grades following a meltdown in global prices.
Accordingly, prices of coal with heat value ranging from 6101 to 6700 kilo calorie per kg were slashed today. The two topmost grades are not touched as they are hardly available.