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Web Exclusive | April 2013

SCCL revises up price of coal

S Vivekanand, Director (Finance) of Singareni Collieries Company (SCCL) informed that the firm raised the price of coal across different grades by an average Rs 18 per tonne.

In 2012-13, SCCL produced 53 million tonne (mn t) of coal against the target of 54 mn t. The company has 50 coal mines across the country.

The price of coal mined by the company ranges from Rs 420 a tonne to Rs 3,896 a tonne for 17 grades of coal (categorised on the basis on gross calorific value).

On the basis of calorific value, different grades of coal range from G1 to G17. The gross calorific value per kilo calories/ per kg varies between 2,201 for G17 grade coal and above 7,000 for G1 grade coal.

The new pricing mechanism (based on GCV) was adopted by Coal India last year after abandoning its earlier mechanism of Useful Heat Value (UHV).

Prices, under the gross calorific value mechanism, are linked to the actual calorific value, or quality, of coal.

CIL used to follow a pricing mechanism based on the UHV of coal, which deducted ash and moisture content from the standard formula, till December 31, 2011.

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