The State-owned Singareni Collieries Company (SCCL) has increased the prices of all grades of coal by an average Rs 18 per tonne.
The revised GCV-based basic price of ‘run-of-mine’ coal ranges from Rs 420 a tonne to Rs 3,896 a tonne for 17 grades of coal, SCCL said in a notification.
When asked about the increase in prices, SCCL Director (Finance) S Vivekanand said, “The company has on an average increased the prices of coal by Rs 18 per tonne.”
Run-of-mine (ROM) coal comprises all sizes which come out of the mine without any crushing or screening.
Different grades of coal range from G1 to G17 on the basis of calorific value. The gross calorific value per kilo calories/ per kg varies between 2201 for G17 grade coal and above 7000 for G1 grade coal.
Under new pricing mechanism (based on gross calorific value) prices are linked to the actual calorific value, or quality of coal.
Coal India, which accounts for 80 per cent of the domestic coal production, had shifted to the new pricing mechanism (based on GCV) last year.
Till December 31, 2011, CIL used to follow a pricing mechanism based on the Useful Heat Value (UHV) of coal, which deducted ash and moisture content from the standard formula.
SCCL, which has 50 coal mines across the country, produced 53 million tonnes (MT) of coal against the target of 54 MT.