New Delhi: Coal India Ltd (CIL) has increased prices of non-coking coal by 8 percent, the state-run coal miner said in a regulatory filing to the stock exchanges on Tuesday. The Chairman of the Maharatna PSU, Pramod Agrawal, had been reaching out to the company's stakeholders to come to a decision on increasing the prices for a long time now, saying that it was of utmost importance to maintain the financial health of the company.
"The Board has approved a price increase of 8 percent over the existing notified prices for high-grade coal of grade G2 to G10. This will be applicable to all subsidiaries, including NEC, for regulated and non-regulated sectors," CIL said. The prices will come into effect from May 31, the miner said in a regulatory filing.
The board of directors of the company approved the revision in the prices of non-coking coal with effect from 00:00 hours of May 31, 2023, it said.
After the revision takes effect, Coal India is expecting to earn incremental revenue of Rs 2,703 crore for the balance period of the financial year 2023-24. Coal India is responsible for supplying at least 80 percent of India's total coal requirements. Bulk of its supplies consists of non-coking coal, which is used by power plants to generate electricity. A rise in the prices of coal will impact the cost of power generation.