Switch to new pricing scheme in calibrated way: Coal India

Shares of Coal India came under pressure yesterday after coal minister Sriprakash Jaiswal said the PSU major will implement the new pricing mechanism by the month-end but will ensure this will not result in higher prices for power producers.

Earlier this month, the state-run miner decided to benchmark the pricing for non-coking coal to gross calorific value (GCV) from the current useful heat value (UHV) based gradation, a move that is expected to push up costs for cement and steel makers.
Speaking to CNBC-TV18, NC Jha, chairman of Coal India said, the switch to GCV has led to huge rise in C, D and part of E quality coal. This has created a problem among consumers feel that they have been asked to pay higher prices, he said.