Coal India cuts coal price due to cement opposition

Coal India, rolled back on Tuesday an increase in prices under a new pricing policy due to opposition from cement and power sectors but will review the system after assessing its Jan-Mar quarter performance.

Coal India decided this month to benchmark pricing for non-coking coal to gross calorific value (GCV) from the current useful heat value (UHV) based gradation. The move evoked protests from users in cement and steel sectors.

When reporting its 3Q figures in mid-January, India’s leading cement producer UltraTech Cement said its variable costs had increased by 16 per cent mainly due to rising energy expenses, partly attributable to a 30 per cent rise in domestic coal prices by Coal India during 4QFY11.