Coal India Ltd’s arm BCCL on Tuesday said its board has approved rationalisation of basic prices of certain grades of raw coking coal for the non-regulated sector with rate hikes ranging from 0.1 per cent to 14 per cent.
The rate revision, approved at the board meeting, is aimed at correcting “disproportionate inter-grade price differentials” in BCCL’s raw coking coal pricing, Bharat Coking Coal Ltd said in a stock exchange filing.
“With a view to correct disproportionate inter-grade price differentials, the revision covers steel grades (I and II), direct feed, PCC Washery Grades (W-II to W-VI) and HVMC Washery Grades (W-I to W-VI) for non-regulated Sector only. The basic prices of different grades have been increased by approximately 0.1 per cent to 14 per cent over the existing prices,” the filing said.
According to industry experts, the move will marginally increase the cost of domestic coking coal for steel manufacturers and other non-regulated buyers.
But since the increase is 0.1-14 per cent and applies only to selected raw grades, the immediate impact is likely to be modest rather than broad-based, they said.
BCCL plays a pivotal role in fuelling the nation’s steel sector. It manages an extensive network of open-cast and underground mines across Jharkhand and West Bengal, with a particular focus on the Jharia Coalfield.