CIL approves 8% thermal coal hike, targets revenue of Rs 27 billion
COAL & MINING

CIL approves 8% thermal coal hike, targets revenue of Rs 27 billion

The Board of Directors of Coal India (CIL) has approved an 8% price hike for high-grade thermal coal, grades G2 to G10, effective May 31, 2023. This price increase will apply to all subsidiaries of CIL, including NEC, for both regulated and non-regulated sectors. CIL expects to generate approximately Rs 27 billion in incremental revenue for the remaining period of the financial year 2023-24.

Pramod Agrawal, CMD of CIL, had previously indicated plans for a coal price hike in an interview.

CIL's last price revision was in January 2018, and since then, the company has absorbed rising costs without adjusting its prices. Agrawal highlighted the need for adequate compensation to support the financial viability of CIL's arms, particularly Eastern and Western Coalfields Ltd and Bharat Coking Coal, as they face financial challenges and require funding for future projects.

To meet ambitious production and off-take targets, CIL emphasises the importance of having sufficient capital for mining and rail evacuation projects. While recognising the argument for price revision, CIL intends to adopt a balanced approach, considering the potential impact on various commodities. The objective is to safeguard CIL's EBITDA and minimise the impact on the nation.

The increase in coal prices comes at a time when India is experiencing record-high electricity demand, reaching 220 GW on May 16. The price hike is expected to have an impact on coal prices, which will influence the overall energy landscape.

The Board of Directors of Coal India (CIL) has approved an 8% price hike for high-grade thermal coal, grades G2 to G10, effective May 31, 2023. This price increase will apply to all subsidiaries of CIL, including NEC, for both regulated and non-regulated sectors. CIL expects to generate approximately Rs 27 billion in incremental revenue for the remaining period of the financial year 2023-24. Pramod Agrawal, CMD of CIL, had previously indicated plans for a coal price hike in an interview. CIL's last price revision was in January 2018, and since then, the company has absorbed rising costs without adjusting its prices. Agrawal highlighted the need for adequate compensation to support the financial viability of CIL's arms, particularly Eastern and Western Coalfields Ltd and Bharat Coking Coal, as they face financial challenges and require funding for future projects. To meet ambitious production and off-take targets, CIL emphasises the importance of having sufficient capital for mining and rail evacuation projects. While recognising the argument for price revision, CIL intends to adopt a balanced approach, considering the potential impact on various commodities. The objective is to safeguard CIL's EBITDA and minimise the impact on the nation. The increase in coal prices comes at a time when India is experiencing record-high electricity demand, reaching 220 GW on May 16. The price hike is expected to have an impact on coal prices, which will influence the overall energy landscape.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?