BS reported that Utkal Chamber of Commerce, an apex body of industry representatives in the state, opposed the Coal India's move to shift to a new pricing mechanism for thermal coal as they feel it has increased the prices of certain grades by up to 150%

Mr Ramesh Mohapatra president of Utkal Chamber of Commerce and Industry told media persons that “Using its monopolistic position in Indian coal market CIL has resorted to price increase within 10 months, which made the coal price to go up three times of what it was one year back.”

The new mechanism, opposed by the industry body, is based on Gross Calorific Value under which prices are linked to the actual calorific value or quality of coal. The earlier mechanism was based on the Useful Heat Value grading system deducted ash and moisture content from the standard formula.

Mr Mohapatra said switching over to GCV has led to a spurt in prices, particularly C to G grade coal ranging from 75 to 150%

The chamber said that the CIL decision is in contravention to New Coal Distribution Policy, 2007, which has placed the captive power plants in a disadvantage position.

Mr Mohapatra added that “Coal prices for the Captive Power Plants after implementation of the new policy will increase by 83%.”

UCCI, besides opposing the CIL’s move, also expressed concern over hike in water cess.

(Sourced from BS)