New Delhi: Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited (CIL), has increased the add-on price of coal from its Rajmahal Area by 55.56 percent, raising it from Rs 450 per tonne to Rs 700 per tonne with effect from November 30. The decision was approved by the Board of Directors of Coal India at a meeting held on Friday, a regulatory filing said.
"The Board of Directors of Coal India Limited at its meeting held on date has approved revision of Add-on Price of coal with respect to Rajmahal Area of Eastern Coalfields Limited to ₹700 per tonne from ₹450 per tonne w.e.f. 30.11.2024," Coal India told BSE and NSE.
Due to this revision, Eastern Coalfields Limited will earn approximately incremental revenue of around Rs 300 crore per annum. ECL Director Technical Niladri Roy told PTI that coal from Rajmahal mine was being supplied to NTPC's Kahalgaon and Farakka super thermal power plants at low transportation cost. The add-on price has been revised with the consent of NTPC.
He added that for the last seven years, there was no price increase of coal in all mines of CIL and added that "if we don't increase the price then this mine won't survive."
Coal India has been reaching out to its stakeholders to consider raising prices for the last two-three years, saying that it needs to increase coal prices by at least 10-11 percent in order to remain profitable. Coal India has not revised notified prices of coal since 2018.
(With inputs from PTI)
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)