Coal India Limited (CIL) has increased the prices of its high-grade coal by 8 percent, the company has said in a regulatory filing. This is the first time since 2018 that the country’s largest coal miner has revised its coal prices, which will be applicable for all its subsidiaries as well.
"The Board of Directors of CIL at its meeting held on May 30 has approved revision of non-coking coal prices w.e.f. 00:00 hours of May 31, 2023. The
Board has approved the price increase of 8 percent over the existing notified prices for high grade coal of grade G2 to G10. This will be applicable to all subsidiaries of CIL, including NEC for regulated and non-regulated sectors," the state-owned company said in its filing.
CIL is expecting to earn a revenue of Rs 2703 crore for the balance period of financial year 2023-24 and all add-ons would be as per the extant practice, it further stated.
Moneycontrol was the first to report on May 11 that CIL is likely to increase coal prices due to its plan of increasing the wages for its non-executive staff.
On May 23, CIL said it has reached an agreement with its 2.38 lakh strong non-executive workers over the revision of wages. Under the agreement reached, a 19 percent minimum guaranteed benefit from July 1, 2021, on emoluments (basic, VDA, SDA & attendance bonus) and a 25 per cent increase in allowances have been granted, Coal India said in a filing to exchanges.
Also read: MC Interview | Don't expect shortage of coal, imports will continue to increase: Coal Secretary.
The wage revision added an additional liability of nearly Rs 6,000 crore on the CIL. Wages of non-executive workers, who account for 94 per cent of CIL’s workforce, are revised every five years.
Notified coal prices were last revised by CIL in January 2018. The increase back then was effectively 11 percent. For 2025-26, the PSU has set a production target of 1 billion tonnes.
The hike in coal prices is now likely to have an impact on India's power tariffs as well. Coal-fired electricity contributes anywhere between 73-77 percent in meeting India’s power demand, which is growing at about 6.4 percent annually.
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