Impact of revised coal price mechanism: ICRA Ratings
ICRA Ratings has come out with its report on revised coal price mechanism and its likely impacts. As per the research firm the possibility of grade slippages remains following the completion of the GCV estimation process, in which case the extent of price rise for a particular coal mine would be moderated to an extent.
January 25, 2012 / 18:35 IST
ICRA Ratings has come out with its report on revised coal price mechanism and its likely impacts. As per the research firm the possibility of grade slippages remains following the completion of the GCV estimation process, in which case the extent of price rise for a particular coal mine would be moderated to an extent.
Revised coal price mechanism: Sponge Iron, Cement units expected to be significantly affected; impact on power sector likely to be mixedCoal India Limited (CIL) has migrated to a new system for pricing its non-coking (NC) coal on the basis of Gross Calorific Value (GCV) w.e.f. from January 01, 2012. Till December 2011, the company used to follow the Useful Heat Value (UHV) based method to price its NC coal. The revised mechanism is more in line with the international system as against the previous mechanism, which was an old method and depended on moisture and ash content through the application of an empirical formula. ICRA
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