Monday, August 23, 2010

CIL to sell coal at import rate |

CIL to sell coal at import rate |

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.

No comments:

Post a Comment