Coal India Ltd (CIL) hiked thermal coal prices for both power and non-power consumers with immediate effect, a decision which would jack up energy prices by up to Rs 0.50 per unit. The company has hiked prices of non-coking coal which will raise average coal price by about 8.5 percent. the hike has been made for the survival of the company which requires implementation of cutting-edge new technologies and environment sustainability.
The domestic coal prices are still cheaper between 44 and 64 percent, compared to Indonesian coal. Prices of seven grades (out of 17) had been lowered in the new pricing.
The revision will result in an incremental revenue of Rs 1,956 crore for the remaining period of 2017-18 fiscal while total revenue will be Rs 6,421 crore. The price hike will be applicable to all subsidiaries of Coal India, including NEC for regulated and non-regulated sectors.
Association of Power Producers Director General said the following,
"The arbitrary price increases of CIL are burdening the common power consumers. As this increase along with earlier imposition of evacuation charge and increase in surface transportation charge would add about 35 paise in retail (power) tariff."
CIL had last revised price for the fossil fuel in May by 6.3 percent on an average that helped the company garned additional revenue of Rs 3,234 crore in 2016-17.