CIL plans price hike to offset burden of clean energy cess
KOLKATA (miningweekly.com) – Indian major Coal India Limited (CIL) is planning to hike its prices for domestic supplies within the next month.
According to a company official, the CIL board of directors would be meeting in August to finalise the extent of the price hike to be effected.
The hike had been necessitated by the Indian government’s move to double the clean energy cess to Rs100 ($1.6) a ton, which CIL proposes to pass on to its customers through an increase in coal prices, the official said.
While presenting the federal Budget 2014/15 earlier this month, Finance Minister Arun Jaitley proposed doubling the clean energy cess on coal and lignite to increase research and development funding and to promote clean energy technologies.
CIL had not yet disclosed the financial impact of the higher cess, but quick back-of-envelope estimates indicated that assuming coal sales of 520-million tonnes during the current financial year, the miner would have to pay $866-million on account of the clean energy cess, against the $411-million it paid to the government in 2013/14.
In May 2013, CIL reduced prices of two premium grades by 12% and increased prices of other grades by 10%, resulting an average higher net realisation of about 4.7%. However, recently the miner increased prices for coal from select mines, including a $6/t increase for coal from the Rajmahal mines in eastern India.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation