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Wednesday, 26 August 09
COAL INDIA MAY HIKE COAL PRICES BY UP TO RS 175 (ABOUT US$ 3.60) A TONNE


The Economic Times reported that, state-owned Coal India may hike coal prices by up to Rs 175 (~ US$ 3.60) a tonne to close the gap between domestic and international rates. 

CIL has not hiked prices since 2007 and this has resulted in a huge difference in prices.

"CIL is considering to raise the coal prices by about 10 per cent across-the-board soon," sources said.

Domestic coal prices range between Rs 770 (US$ 15.87) and Rs 1,700 (US$ 35.05) a tonne. If hiked by 10 per cent, the prices would go up by Rs 175 (US$ 3.60) a tonne.

A top Coal India official, however, said the hike would be "modest" and said, "our prices are 50 per cent discounted as compared to the global prices. Now there has been a major wage revision resulting in over Rs 4,000 crore (US$ 825,251,988) additional financial burden on us which cannot be met through production and productivity alone."

The official said that CIL had witnessed a sharp drop in retained earnings because of the wage-built annual impact and the company's retained profit could be only Rs 300 crore (US$ 61,893,942) on a turnover of about Rs 45,000 crore (US$ 9,284,092,954) last year. (US$ 1 = 48.47 INR)
Source: The Economic Times



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