According to Sources, Spark found that Coal India Ltd (CIL) is planning announce the new set of coal prices this month. This will be done prior to the retirement of the acting CIL Chairman Mr. N. C. Jha on 31st January 2012.
The decision comes after the ministry formally asked CIL to relook its January 1 pricing.
According to Mr. Jha, CIL were planning to revisit the coal pricing in March; however, Coal Ministry had formally sent a letter on 25th January 2012 to relook the prices immediately to prevent any major impact from the previous price regime.
However, Mr. Jha clarified that, the GCV (Gross Calorific Value) mechanism will not be rolled back in the current price change.
"As switchover from Useful Heat Value (UHV) concept to GCV had happened under me, so I'll address the price issue before I retire," he told to the reporters.
Spark believes that the revised pricing would benefit or reduce the price shock in C, D and upper E grades of coal under UHG category. The earlier pricing benefitted CIL by close to 12.5% in additional revenue and the new pricing will eliminate most of it. The January 1 pricing was based on discount on import price but now the pricing would be done on what the consumers were paying in UHV regime.
CIL had attempted to reduced the gap of landed international coal price with domestic coal which was as high as close to 75% in certain coal varieties like C, D and part of E grades.
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