Coal news and updates

CIL may not opt for coal price rationalisation soon

There have been lots of speculation for the last many months on whether Coal India Ltd (CIL) will go for rationalisation of coal prices in view of difficulties being faced to sell its higher grades, but the company still appears to have not taken a serious call on the proposal.

“Nothing is happening. The decision has to be taken at the board level, but right now there is no proposal as such,” a senior official from the company told ICMW when asked whether CIL was planning to go for rationalisation of prices.

The official, however, indicated that there is a need for price rationalisation as CIL’s higher grades are currently not competitive in view of the nearly 50% decline in international coal prices during the past nearly 18 months.

Asked categorically whether CIL will increase coal prices, the official said, “We will see. This is always discussed by the board, but there was never any formal proposal to this effect at any of the recent board meetings.”

Asked if this means there is going to be a formal discussion in the next board on the issue, the official said, “We will see. There is huge time left for the next board meeting. Right now nothing is happening. As and when there is something, we will announce. There is no concrete proposal as of now.”

Source: ICMW