Coal India price to increase by 3.3% due to new cess of Rs 50

Coal India, India’s primary supplier of domestic coal, said it would impose a charge of Rs 50 per tonne on all customers except those who are availing its ‘rapid loading’ facility.

It said the extra charge will general around Rs 2,500 cr per year. For the remaining three months of the financial year, it would generate about Rs 800 cr.

It said the fee is being imposed under the title of ‘evacuation charges’.

The move is unlikely to be welcome by industries such as power and metals as the charge will direct increase costs for them.

At present, the average coal price in India is about Rs 1,500 per ton, and the addition of the new charge will raise the price by about 3.3%.

Coal India Limited (CIL) is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal, India.

It is the largest coal producer company in the world and contributes around 82% of the coal production in India.

It produced 554.14 million tonnes of raw coal in 2016-17.