Last month, Coal India (CIL) Chairman Pramod Agrawal made a case for raising the price of domestic coal, unchanged since 2018. Though he has good reason to argue for the rise, he will probably not be involved when the final decision is made, either way. He will not be the first one.
To test the waters, CIL’s sister concern, Singareni Collieries Company Limited (SCCL), raised by Rs 100 per tonne the price of all types of coal it sells, with effect from April 1. But this is minor. Compared to Indonesian Kalimantan coal ruling at $178 per tonne, CIL and SCCL prices are far lower at $40 per tonne.
This modest price rise must be juxtaposed against CIL’s record FY23 production to offer a sense of the paradox in India’s coal economy. Since the price of electricity, which accounts for 74 per cent of CIL’s production, is mostly fixed on political considerations, CIL has to sell coal at rack rates. But the miner’s impressive
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