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Coal India mulls 10% price hike, e-auction quantum cut

In the last Coal India board meeting, a cut in e-auction quantum by 50 percent, which has been directed by the coal ministry, was discussed.

The Coal India board is mulling a price hike of around 10 percent and a cut in e-auction quantum by 50 percent and is expected to take a decision on August 12.

In the last Coal India board meeting, a cut in e-auction quantum by 50 percent, which has been directed by the coal ministry, was discussed. Though the board did not take any decision, it has considered it and said that coal prices will have to rationalize if there has to be 50 percent cut in the coal meant for e-auction.


E-auctioned coal is sold at higher prices and it constitutes about 10 percent of the total production of Coal India and it helps generate the revenues.

So, to manage the revenues and not have any impact, Coal India had said that coal prices have to be rationalized.

Sources say that the Coal India board is likely to take up a hike of about 10 percent for coal prices which will be for low grades of coal which is mostly utilized by the power companies.

This is also to adjust losses on account of higher input costs. For example, last year we had wage revision and some impact of diesel prices too were seen on the books of Coal India. There is another clean energy cess which has been announced in the recent Budget which will cost Coal India Rs 5200 crore and this is basically to bridge that gap. If the government is looking at diverting e-auction coal for the power plant and if there has to be any price cuts, then revenues should not be impacted.

Source: Moneycontrol