Web Exclusive | December 2012
CIL not considering coal price hike
S Narsing Rao, Chairman and Managing Director of Coal India (CIL) informed that the firm was not considering any price hikes as of now, though he admitted that the cost of production had gone up substantially following the diesel price hike in September of Rs 5 a litre.
I don’t think there is any such proposal under consideration now. Time to time, the firm takes stock of the cost of production and then decide, he said. Diesel forms a major cost component in coal production. For every rupee’s rise in diesel price, cost of production of the firm rises around Rs 100 crore, Rao said.
Meanwhile, the firm expects to produce 46 mn t of coal this December. The company had produced about 39 mn t in November, he said. In November, CIL had lost approximately 4 mn t of production and 1.5 mn t offtake on account of the combined impact of Cyclone Nilam and festival holidays.
As on the last week of November, the company’s overall production was up approximately 7 per cent to 260 mn t and despatches had gone up nearly 8 per cent to 287 mt. The company has to produce around 204 mn t of coal in the remaining 125 days to achieve its targeted production of 464 mn t for the current fiscal.