BCCL raises raw coking coal prices by up to 14% for non-regulated sector

New Delhi: Bharat Coking Coal Limited (BCCL) has raised the basic prices of several grades of raw coking coal for consumers in the non-regulated sector (NRS). The new prices took effect from October 14. The company’s board approved the revision at its 447th meeting, held at Koyla Bhawan in Dhanbad on Tuesday.

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In a stock exchange filing, BCCL said the basic prices of the grades concerned “have been increased by approximately 0.1 percent to 14 percent over the existing prices.” The company, a Miniratna subsidiary of Coal India Limited (CIL), described the move as a rationalisation. It said the revision was made “with a view to correct disproportionate inter-grade price differentials.”

The change applies to steel grades I and II, direct feed coal, prime coking coal (PCC) washery grades W-II to W-VI and HVMC washery grades W-I to W-VI. According to the filing, it covers these grades “for Non-Regulated Sector only.” BCCL’s price notification said the HVMC prices apply to non-regulated consumers other than the power sector (including independent power producers), fertiliser and defence.

Rs 7,000 a tonne for steel grade I

The price notification set the run-of-mine (ROM) price of steel grade I prime coking coal at Rs 7,000 a tonne. Steel grade II was priced at Rs 6,500 a tonne and direct feed coal at Rs 6,750.

Prices for the washery grades of prime coking coal fall as the grade drops. W-II was priced at Rs 4,480 a tonne and W-III at Rs 3,700. The price falls further to Rs 3,350 for W-IV, Rs 2,960 for W-V and Rs 2,700 for W-VI.

HVMC coal was priced below prime coking coal at every washery grade. Its top grade, W-I, was set at Rs 4,450 a tonne and W-II at Rs 4,260. The lower grades were priced at Rs 3,600 for W-III, Rs 3,190 for W-IV, Rs 2,860 for W-V and Rs 2,560 for W-VI.

Auction buyers pay the higher of two prices

Not every buyer will simply pay the new rates. The notification set a separate rule for NRS linkage auction consumers from tranche VI onwards, NRS central public sector enterprises (CPSEs), state nominated agencies (SNAs) and buyers under CIL’s e-auction scheme. These buyers will pay whichever is higher of the new notified price and the modulated price BCCL set on March 31. The notification said the higher of the two “shall be applicable” to them.

BCCL had last revised the prices of coking coal on April 1 this year. The revision was based on Wholesale Price Index (WPI) indexation. It amounted to an increase of 0.24 percent over the previous year and applied to NRS linkage auction tranche VI onwards and to single window mode agnostic e-auction.

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Charges and levies extra

According to the notification, the prices are on a free-on-rail (FOR) or free-on-board (FOB) basis, as applicable. They do not include other charges such as surface transportation, sizing and evacuation charges. BCCL said these will continue to be charged as per CIL and BCCL price notifications.

Statutory levies are also extra. The notification said royalty, District Mineral Foundation Trust (DMFT) and National Mineral Exploration Trust (NMET) contributions, bazar fee and other levies “will be charged extra.” Taxes such as GST will apply on top.

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