Coal news and updates

Power generation costs up on revision in coal transport charges

December 9: The cost of power generation has gone up by one paise per unit because of a revision in surface transportation charges (STC) by Coal India Ltd (CIL), with effect from November 14, 2013, Minister of State for Coal Pratik Prakash Bapu Patil said in Parliament on December 9.

The revision in the STC was effected after a gap of nearly four years since the last one had been made in 2009, the minister said.

The move comes on the back of a four paise per unit increase in generation cost after May 28, 2013 due to a revision and rationalisation of the price of non-coking coal for all CIL subsidiary companies, including North Eastern Coalfields (NEC), and the non-linked washery (NLW) coal of Bharat Coking Coal Ltd (BCCL), Patil said.

The revised STC is Rs 57 per ton for transportation of coal to the loading point beyond 3 km and up to 10 km, while the STC has been increased to Rs 116 per ton for transportation of coal above 10 km and up to 20 km from mines to the loading points.

In cases where coal is transported for more than 20 km to the loading point, transport charges shall be payable on actual basis, which is to be borne by the purchaser.

Because of the price revision in May, price of the higher grades of non-coking coal for GCV band G1, G2 and G5 had been kept the same for all the subsidiary companies, including NEC, as was applicable under the price notification dated January 1, 2012 applicable from this very day.

Prices of the higher grades of non-coking coal, ie, GCV band G3 and G4 were reduced in May by 12% in respect of all the subsidiary companies.

"However, prices of non-coking coal, ie, in the GCV band G6 to G17, were increased by 10% besides a 10% add-on for Western Coalfields Ltd (WCL) over and above the prices applicable for other subsidiary companies for both regulated and non-regulated sectors for GCV grades G6 to G17 on account of the higher cost of mining," Patil said.

An additional price of Rs 300 per ton over and above the notified price in respect of the coal produced from Rajmahal mine in Eastern Coalfields Ltd is applicable.