Coal India hikes prices, power producers see rise in tariffs
State-run Coal India today hiked thermal coal prices for both power and non-power consumers with immediate effect, a decision which electricity producers said would jack up energy prices by up to Rs 0.50 per unit.
Sources indicated that the average price hike could be around 10 per cent but the Indian Captive Power Producers Association claimed that the hike is in the range of 15-20 per cent for G-11 and G-14 grade fuel which would make power costlier by Rs 0.30-0.50 per unit.
The board of Coal India Ltd in its meeting approved revision of non-coking coal prices with effect from January 9, 2018, Coal India (CIL) said in a filing to BSE, without disclosing the quantum of increase.
The price revision will result in an incremental revenue of Rs 1,956 crore for the remaining period of 2017-18 fiscal while total revenue will be Rs 6,421 crore, Coal India said.
The price hike will be applicable to “all subsidiaries of Coal India, including NEC for regulated and non-regulated sectors”, the filing said.
Power producers, however, said the price hike will increase electricity tariffs.
“This increase for G-11 and G-14 grade (coal) is in the range of 15-20 per cent…It is expected that the coal price increase would result in 30-50 paise/per unit rise in power tariff,” Indian Captive Power Producers Association (ICPPA) Secretary Rajiv Agrawal told PTI.
This increase, he said, is over and above 12-18 per cent indirect price increase by introduction of evacuation charge (Rs 50 per tonne), sizing charge and surface transportation charge.
“For global competitiveness, energy prices has to come down whereas the nation is being burdened by ineffectiveness of Coal India, its manpower, cost structure and losses,” he explained.