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New UserCoal India arm CCL hikes coal price, eyes more revenue
16 Jan 2017
Stateowned Coal India arm Central Coalfields Ltd today announced an
increase in price of coking coal, which may help the PSU earn an additional revenue of
nearly Rs 89.98 crore for the remainder of 201617 and Rs 222 crore for the next fiscal.
The announcement came at a time when steel companies are feeling the squeeze because of
a surge in global coking coal prices.
However, the company did not specify the quantum of the increase.
In a filing to BSE, Coal India (CIL) said: "The board of directors of Central Coalfields Ltd, a subsidiary of Coal India, has approved revision
of coal prices with effect from 00:00 hours of January 14, 2017... this revision, will earn approximately additional revenue of Rs 89.98 crore
for the balance period of 201617 i.e January 13 to March 2017 and additional revenue of Rs 222 crore for 201718 subject to
achievement of production and dispatch target norms."
According to an official, the price of various grades of coking coal of the PSU varies between Rs 2,400 and Rs 5,050 per tonne.
"The increase in price is done by subsuming washery recovery charge (WRC), which was being charged separately in the case on nonlinked
washery grade coking coal, it said.
Yesterday, CIL's arm BCCL raised coking coal price by about 20 per cent, which is likely to help the PSU earn an additional revenue of Rs
702 crore for the remaining part of 201617 and Rs 2,986 crore in 201718.
The decision on the same was taken at the board meeting of Bharat Coking Coal Ltd (BCCL).
"The board of directors of Bharat Coking Coal Ltd, a subsidiary of Coal India Ltd, has approved revision of coking coal prices with effect
from 00:00 hours of January 13, 2017 (of) approximately +20 per cent increase over the current price," Coal India (CIL) said in a filing to
BSE.
The company further said the price of steel grade and direct feed coal has been linked to price of washed coking coal, which has been
fixed on import parity price.
"Due to this revision, CIL will earn approximately an additional revenue of Rs 702 crore for the balance period of 201617 i.e.from January
13 to March 31, 2017, and additional revenue of Rs 2,986 crore for 201718 on achieving targetted production and despatch programme,"
the company said.
Coking coal, also known as metallurgical coal, is used for coke manufacturing, one of the key irreplaceable inputs for production of steel.
Coal India, in May last year, had raised coal prices by nearly 6.3 per cent. It accounts for over 80 per cent of the domestic coal output and
has a production target of 598 million tonnes for the current fiscal.
It is eying an output of 1 billion tonnes by 2020.
Source: ET