Kolkata: Coal India Ltd (CIL) on Tuesday announced a revision in coal prices, effective immediately, which will result in an estimated revenue gain of Rs1,956 crore in the current fiscal year, and a gain of Rs6,421 crore from the next year. The stock jumped as much as 7.7 per cent to Rs 310 after the announcement.
The company increased prices of thermal coal by an average 9%. The increase would be applicable to all subsidiaries for the regulated and the non-regulated sectors, the company said in a regulatory filing.
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The Board of Directors of Coal India Ltd in its meeting held on date has approved revision of Non-Coking coal prices. "However, in the latest revision, the miner reduced prices for some grades of coal".
The price of thermal grade coal with gross calorific value (GCV) of 3100 kcal/kg to 4300 kcal/kg for supply to power sector has been increased by about 15-18%. The benchmark S&P BSE Sensex was 0.2 percent higher. Coal India's shipments in December rose to the highest for the month in data going back to 2013, as power plants, its biggest customers, bought more to replenish their depleted inventories.
"The demand for coal is robust and there couldn't have been a better time for this price increase", said Goutam Chakraborty, an analyst at Emkay Global Financial Services.
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