Coal India Raises Prices: Rs 10/Tonne Hike From April 16

New Delhi, Apr 1 (PTI) State-owned Coal India Ltd on Tuesday said its board has approved a Rs 10 per tonne increase in the prices of both coking and non-coking coal with effect from April 16.

"CIL board at its meeting held on date, inter alia approved enhancement of notified price of coal by Rs 10 per ton i.e from existing Rs 10 per ton to Rs 20 per ton for non-coking and Rs 10 per ton for coking coal for regulated and non-regulated sectors across CIL towards contribution to the corpus of CMPS-1998," it said.

This price adjustment is aimed at contributing to the corpus of Coal Mines Pension Scheme (CMPS)-1998 and is likely to impact both regulated and non-regulated sectors, potentially affecting the company's revenue and market positioning, according to a company official.

Coal India Ltd (CIL) accounts for over 80 per cent of domestic coal output.

Eastern Coalfields Ltd (ECL), a subsidiary of Coal India, had in November last year announced increase in add-on price of coal in Rajmahal area of Jharkhand to Rs 700 per tonne from Rs 450.

The revision reflects adjustments in logistics costs, which are now being passed on to consumers, the company officials had said. The company had said that the hike is expected to generate around Rs 300 crore in incremental annual revenue for ECL, contributing significantly to the company's financials.

State-owned CIL produced 781.1 MT of coal in 2024-25, nearly 7 per cent less than the company's target for the financial year.

CIL's coal production target for 2024-25 was 838 million tonnes (MT).

However, coal production by Coal India Ltd grew marginally by one per cent in FY25, over the year-ago period, the public sector enterprise said in a regulatory filing. CIL's coal production in March dropped by 3.1 per cent to 85.8 million tonnes over the year-ago period.

The output was 88.6 MT in the same month of FY24.

The subsidiaries of the coal behemoth, which registered a decline in production are Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL) and South Eastern Coalfields Ltd (SECL).

Coal India accounts for over 80 per cent of domestic production. In FY24, CIL produced 773.65 million tonnes, marking an 11 per cent growth over FY23.