India: CIL revises non-coking coal prices across various subsidiaries

Coal India Ltd (CIL) has released a new price list for various grades of non-coking coal, in line with the recent hike of INR 10/t being introduced as contribution towards the corpus of Coal Mine Pension Fund.

The company has listed two separate prices for the various subsidiaries, thus providing exclusive preference to Western Coalfield Ltd (WCL), which is the sole coal miner in the region. Notably, it was the first price revision carried out since Jan '18 and envisage an increase of INR 10/t from the previous term. (Grade-wise price for various subsidiaries can be seen here).

Price of highest calorific value coal grade (G1) having GCV exceeding 7000 Kcal/kg has been set INR 100/t in excess over and above the price applicable for G2 grade, for increase in GCV by every 100 Kcal/kg or part thereof. Prices for remaining grades are fixed in descending order of their respective GCV value.

Termed as notified coal prices, these have been separately defined for both power and non-power sector and would form the basis of evaluating the reserve price in the auction.

It is pertinent to note that CIL has restored the old regime of price fixation by vesting power to individual subsidiaries for evaluating the upper cap on notified price from Nov '20, before which the coal was offered at a discount price in order to relief the customers from financial hardship.

During the first 7 months of FY '21 (Apr-Oct '20), the company has recorded price realization of INR 1440.24/t for coal sale carried across various auction schemes, thus fetching a premium of 10% over the assessed notified price.