Eastern Coalfields hikes price from Jharkhand mine, to earn Rs300 cr additional revenue
The Coal India subsidiary, has raised the add-on price of coal in Jharkhand's Rajmahal area from Rs450 to Rs700 per tonne, effective November 30. This hike, aimed at offsetting higher logistics costs, is projected to generate Rs300 cr in incremental annual revenue
image for illustrative purpose
New Delhi: Eastern Coalfields Ltd, a subsidiary of Coal India, on Friday announced a hike in the add-on price of coal in the Rajmahal area of Jharkhand to Rs 700 per tonne from Rs 450, which will earn an additional Rs 300 crore revenue to the company. The revision, effective from November 30, reflects adjustments in logistics costs, which are now being passed on to consumers, company officials said.
The hike is expected to generate around Rs 300 crore in incremental annual revenue for ECL, contributing significantly to the company's financials. "This increase aligns with the need to account for higher logistics expenses, ensuring sustainable operations in the Rajmahal area," an ECL spokesperson said.
Meanwhile, ECL parent firm Coal India in a filing said, "The Board of Directors of Coal India Limited at its meeting held on date has approved revision of Add-on Price of coal with respect to Rajmahal Area of Eastern Coalfields Limited to Rs 700 per tonne from Rs 450 per tonne w.e.f. 30.11.2024." Due to this revision, Eastern Coalfields Ltd (ECL) will earn an incremental revenue of around Rs 300 crore per annum, it said. ECL Director Technical Niladri Roy told PTI that coal from Rajmahal mine was being supplied to NTPC's Kahalgaon and Farakka super thermal power plants at low transportation cost. The add-on price has been revised with the consent of NTPC.
He further said that for the last seven years, there was no price increase of coal in all mines of CIL and added that "if we don't increase the price then this mine won't survive." Mining major Coal India Ltd had earlier hinted that it might raise prices of the dry fuel by at least 10-11 per cent to mitigate the impact of increased costs. The Kolkata-headquartered company had last hiked coal prices in 2018. Coal India accounts for over 80 per cent of domestic coal production.
