Coal India hikes coal prices; to earn additional Rs 3,234 cr in FY17

State-owned CIL today announced nearly 6.3 per cent increase in coal prices and will earn an additional revenue of around Rs 3,234 crore during the current fiscal 2016-17. The decision was taken at the Coal India Ltd board meeting yesterday, the company said in a filing to BSE.

“The Board of Directors of the Company at its meeting held on May 28, 2016 has approved revision of coal prices w.e.f.  00:00 hours of May 30, 2016 appx. 6.29% increase over the current price,” the filing said.

It will be applicable to all CIL subsidiaries and NEC for regulated and non-regulated sectors, the filing said.

Due to this revision, CIL will earn additional revenue of Rs 3,234 crores for the balance period of financial year 2016-17 -- from May 30, 2016 to March 31, 2017, it said.

According to a Coal India official, on an average the current coal price is Rs 1,193 per tonne.

The board has also approved the differential price for Non-Regulated Sector at a reduced rate of 20 per cent over the price of Regulated Sector for G6 to G17 grades of coal for all subsidiaries of CIL, the company said.

In 2014, CIL had increased the price of a certain grade of coal from one of its mines in Godda district of Jharkhand.

CIL accounts for over 80 per cent of the domestic coal production. The company has a target to achieve a production of 598 million tonnes in the current fiscal.