Coal India Hikes Prices, To Get Additional Rs 3,234 Crore In FY17

New Delhi: Coal India Ltd (CIL) on Sunday announced a nearly 6.3 per cent increase in coal prices and the state-owned company will earn an additional around Rs 3,234 crore in revenue this fiscal year (2016-17).

The decision was taken at the Coal India Ltd board meeting on Saturday, the company said in a filing to the BSE.

"The Board of Directors of the Company at its meeting held on May 28, 2016 has approved revision of coal prices w.e.f. 00:00 hours of May 30, 2016 appx. 6.29 per cent increase over the current price," the filing said.

It will be applicable to all CIL subsidiaries and NEC for regulated and non-regulated sectors, the filing said.

Due to this revision, CIL will earn additional revenue of Rs 3,234 crores for the balance period of financial year 2016-17 - from May 30, 2016 to March 31, 2017, it said.

According to a Coal India official, on an average, the current coal price is Rs 1,193 per tonne.

The board has also approved the differential price for the Non-Regulated Sector at a reduced rate of 20 per cent over the price of Regulated Sector for G6 to G17 grades of coal for all subsidiaries of CIL, the company said.

In 2014, CIL had increased the price of a certain grade of coal from one of its mines in the Godda district of Jharkhand.

CIL accounts for over 80 per cent of domestic coal production. The company has a target to achieve a production of 598 million tonnes in the current fiscal year.

The company is eyeing an output of one billion tonnes by 2020.