September 08, 2008

CIL calls for hiking coal prices by 10%

It is reported that Coal India Limited has urged union government to raise coal prices by 10% immediately to save its subsidiaries Eastern Coalfields Limited and Bharat Coking Coal Limited from slipping into the red.

A coal ministry official said that the issue came up in a recent meeting of the ministry held to review coal production during the first 5 months of the current fiscal year.

He pointed out in the meeting that India’s actual coal production during the April to August 2007 period stood at 158.57 million tonnes against a target of 172.25 million tonnes, indicating a shortfall of 13.68 million tonnes. The overall production of Coal India Limited during April to August 2007 was 139.19 million tonnes against a target of 142.76 million tonnes down by 92.6%. Bharat Coking Coal Limited saw marginal growth in coal production of 0.52% during April to August 2007.