CIL to sell coal at import rate | mydigitalfc.com
CIL plans to raise price of coal after treating it to improve calorific value and reduce ash content. The treatment process is called coal beneficiation or washing.
Beneficiation reduces ash content to 27-30 per cent and increases heat value to 5,000 kilocalories per kilogram bringing it at par with imported Indonesian coal.
“CIL will price the washed coal at 15 per discount to Indonesian coal, the cheapest coal imported to India. Washed coal to CIL would cost $28 a tonne leaving around 60 per cent profit margin for the company,” the official said. Indonesian coal costs $45 per tonne at pithead.
The annualised increase in coal price since January 2000 till March 31 2010 is 4.9 per cent.
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