KOLKATA: State-owned CIL will raise coal prices by an average of 10 per cent on lower grades with effect from tomorrow, a move which may lead to higher input costs for some user industries.
The world's largest coal producer also announced price reduction for higher grades by an average of 12 per cent.
Due to the price rationalisation, the company will get an additional annual revenue benefit of Rs 2,511.58 crore, Coal India LtdBSE 3.19 % said in a filing to the BSE.
It added however that for the current fiscal, the additional revenue gain would be Rs 2,119.36 crore as nearly two months of the year have passed.
"The Board of Directors of the company at its meeting held on May 28, 2013 has approved rationalisation of coal prices from 00 hrs of May 28, 2013. The yearly additional revenue would be around Rs 2,511.58 crore," CILBSE 3.19 % said.
A Coal India Director told PTI that "we have raised the coal price of grades of 6 to 17 by 10 per cent on an average, and reduced the price of grade 2 and 4 by 12 per cent on an average".
CIL decreased the premium coal (grade 2 and 4) rate after international prices lost ground in the past months and offtake was poor.
The hike could impact the common man as costs for many user-industries, including power, steel and cement would rise, thereby increasing the chances of impact being passed on to the end-consumers.
Asked about the revision in coal price for non-premium grades, Coal India Chairman S Narsing Rao said: "The board is aware of the situation and and decision taken will be communicated."
The company is also looking at revising the price of premium grade of coal due to falling international prices, he said when asked about possibilities of revising at least the premium coal price.
The international coal price has been easing and thus there had been poor response for the premium coal of CIL, Rao said. PTI