Freight hike won’t have big impact on Coal India’s operations: Sutirtha Bhattacharya, Coal India
Give us a sense of the freight hike impact on coal prices and on a company like Coal India.
Sutirtha Bhattacharya: Railways accounts for more than 70% of Coal India’s freight traffic. But it does not affect the company hugely, because even with that our coal supply price at destination will be less than the substitute cost.
ET Now: Are you saying you won’t be impacted because you will pass it on to your consumers?
Sutirtha Bhattacharya: Yes, that is what I said. As soon as the coal is despatched, the cost of freight goes to the customer.
ET Now: What kind of increase in coal prices is expected because of now this hike?
Sutirtha Bhattacharya: We are not increasing the coal price. The different sectors will be able to tell you depending upon their distance, depending upon the power plant or the other plants they are taking.