Mr Alok Perti coal secretary after board meeting of Coal India Limited said that “The exercise of reviewing the prices has been done. There is definitely a reduction. Probably there could be a reduction in the revenue.”

Mr Perti said a new pricing system that was adopted at the beginning of the year as part of the company’s modernization, the linkage with prices of international grades of coal, will be maintained for only one or two grades.

He said that the GCV system will not be scrapped.

Coal India, which produces 80% of the nation’s coal, introduced a new pricing regime based on gross calorific value on 1 January. The mechanism has a band of 17 grades of coal, compared with seven under the so-called useful heat value system.

A revision had been expected after Coal India and coal ministry officials said earlier this month that a review would take place in the wake of protests by consumers, particularly power producers.

(Sourced from livemint.com)