Coal India’s New Pricing Policy To Cut Power Generation Cost

Coal India’s New Pricing Policy To Cut Power Generation Cost

Coal India’s new pricing policy, which involves selling coal on the basis of total energy content in each consignment, is expected to bring down cost of power generation that would be passed on to consumers, said executives from the company.

“Under the new policy, prices of seven grades have been reduced,” CIL chairman Gopal Singh told ET. “In some cases, prices have been reduced even to the extent of Rs 162 per tonne compared with present coal price chart. It would make power generation cheaper.”

In its new coal pricing policy, which will come into effect from April, the monopoly has graded coal on the basis of total energy content. Each of these grades will have a different rate for one unit of energy within these slabs with higher prices for higher calorific value. Read More…

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