The largest producer of coal in India- Coal India Ltd (CIL) gave a statement that the prices of the non-coking coal will be increased by 8 per cent. Power plants use thermal non coking coal to produce electricity and the increase in the price of thermal coal affects the cost of the power generation.
In a regulatory filing ,the miner (Coal India Limited) said that the prices will come into effect from Wednesday.
Coal India Ltd said that, “The new prices with an increase in 8 percent for the high quality coals i.e, G2-G10 has been approved by the Board of directors and these prices will be applicable to all the National Electrical Code (NEC) and their subsidiaries along with regulated and non-regulated sectors of the country”.The revised approved prices with an increase of 8 per cent will come into effect from 31 May 2023 -CIL said.
In addition to this, The CIL claimed that they are assuming that their revenue would be increased by 2,703 crore rupees in the remaining period of the current Financial year (2023-2024).
As per the report, the overall production of the country in April 2022 was 67.20 MT and almost 57.57 MT of the total production was from the Coal India limited and its subsidiaries.
The increase in the coal prices was initially anticipated by the Moneycontrol reporters when Coal India Ltd planned to increase the wages for its non-executive employees in their organization.
The CIL, while filing the regulatory, reported their changes in coal prices for the first time since 2018 with an increase of 8 percent with the existing prices and it will be applicable to all its subsidiaries along with other companies from May 31 2023.
The prices of the non-coking coal was increased due to the plan of the largest coal producer in India to give an increment to their non-executive staff.