HAZARIBAG: The Damodar Valley Corporation (DVC) is incurring a huge financial loss and it should not have been brought under the Central Electricity Regulatory Act 2003, said Hazaribag MP Yashwant Sinha here on Wednesday.
Delivering a keynote address at a convention on Impact of Electricity Act-2003 Over the Human Face of DVC, organized here by the DVC Officers' Forum, he said by bringing the DVC within the purview of the act, the DVC was incurring huge financial losses, which would hit the development of both Jharkhand and West Bengal considerably as it was the main source of supplying power to these states which fell within the command area of the Damodar basin.
He said the DVC was formed not only for generating power like NTPC and state electricity boards, but was also formed as a statutory body for taming floods, providing irrigation, soil conservation work and afforestation work and reclaiming the wasteland in large areas of Jharkhand and West Bengal.
At present, the power tariff levied by the state electricity board stands at Rs 2.94 per unit, said the MP. The rate is considered inadequate for meeting expenditure and needs to be raised to at least Rs 4 per unit to recover the financial health of the corporation.
The DVC has started a new project to generate 8,570 MW additional power requiring investment of around Rs 36,500 crore, reportedly to realise the Union government's "Vision of Power for All" by 2012, said an official at the convention.
Sinha said the DVC's financial position further deteriorated as it failed to realise dues of Rs 2500 crore from the JSEB and the WBSEB.
Being a member of the standing committee on finance in Parliament, Sinha said he would meet both power minister Sushil Kumar Sindhe and finance minister Pranab Mukherjee along with a delegation of DVC officials and apprise the Centre about the DVC's present position.
Earlier, Sinha opened the Hazaribag chapter of the cost accountants under the Eastern India Regional Council of Institute of Cost Accountants of India.
Times of India
Thursday, 31 March 2011
Monday, 14 March 2011
Coal Price
A 150% hike in prices of A and B grade coal has put Coal India Ltd (CIL) subsidiary Eastern Coalfields Ltd (ECL) in a fix. With the hike, the notified price will touch the premium price point it realised for supplies under a memorandum of agreement (MOA) and it can hamper consumers’ interest.
ECL has MOAs with NTPC, Damodar Valley Corporation (DVC), West Bengal Power Development Corporation (WBPDCL), CESC, Durgapur Projects (DPL) and SAIL to supply 7 million tonne of A and B grade thermal coal of 5,500 kilo calories, equal to the calorific value of imported coal.
The companies under the MOA, pay a premium price of R4,950 per tonne for A grade coal and R4,800 per tonne for B grade coal against notified prices of R1,600 (A grade) and 1,520 (B grade) per tonne for an assured supply.
But after a 150% hike, the notified prices for A and B grade coal has gone up to R4,000 and R3,990 per tonne respectively, which at the consumers end touches R4,947 and R4,799 per tonne respectively.
The hike will bring the prices close to the premium level. So ECL, according to sources close to the development, is considering to pin the MOA prices somewhere at R7,000 per tonne.
ECL is also thinking of scrapping all MOAs and supply coal at a notified price. This means there would be no assured quantity for any consumer and A and B grade coal, mostly used for blending, will get into the common pool of supplies.
According to the present MOA, scheduled to be revised on March 31, WBPDCL had asked for the highest quantity of 30 lakh tonne per annum followed by NTPC 20 lakh tpa, DVC 7.8 lakh tpa, CESC 7 lakh tpa, DPL 3 lakh tpa and SAIL 2 lakh tpa.
Except WBPDCL, all the companies have so far lifted almost the entire MOA quantity and WBPDCL’s off-take was 50-55% of the agreed amount, an ECL official said, adding that in cases of low lifting there is no penalty clause because there is huge demand.
Of CIL’s total production A and B grade coal production is only 7%.
According to the official, although R7,000 per tonne is an exorbitant price and consumers don’t want to pay up, ECL can still realise this price if it pushes it to the e-auction route without assuring any quantity to any consumer.
In fact, the floor price for e-auction is set at a 30% premium above the notified price, which means at the present notified rate floor price for A and B grade coal would be R5,200 and R5,190 per tonne respectively and a premium above that can fetch R7,000 or more for every tonne of coal.
So scrapping MOA would by no means be against the interest of ECL, but would hamper consumers’ interest, the official said. Krishna Gupta, managing director of WBPDCL, said even if Rs. 7,000 is a very high price, it is better than not having any assured supply. “In fact, in the MOA the quantity demanded is reserved and thereafter even if it is not lifted there is no penalty. If import prices are low, but there are problems of logistics and inventory, it may put stock position under pressure,” Gupta said. He said the impact of coal price increase would ultimately be passed on to the consumers.
CESC chairman Sanjiv Goenka said his company was aware that the price for MOA coal could go up to R7,000 per tonne, but it was waiting for an official communication and has not decided anything on it as yet. The ECL board would take a final decision on March 28, an ECL official said. ECL’s total production this fiscal is expected to cross 30 million tonne, marginally higher than its production in 2009-2010, he added.
ECL has MOAs with NTPC, Damodar Valley Corporation (DVC), West Bengal Power Development Corporation (WBPDCL), CESC, Durgapur Projects (DPL) and SAIL to supply 7 million tonne of A and B grade thermal coal of 5,500 kilo calories, equal to the calorific value of imported coal.
The companies under the MOA, pay a premium price of R4,950 per tonne for A grade coal and R4,800 per tonne for B grade coal against notified prices of R1,600 (A grade) and 1,520 (B grade) per tonne for an assured supply.
But after a 150% hike, the notified prices for A and B grade coal has gone up to R4,000 and R3,990 per tonne respectively, which at the consumers end touches R4,947 and R4,799 per tonne respectively.
The hike will bring the prices close to the premium level. So ECL, according to sources close to the development, is considering to pin the MOA prices somewhere at R7,000 per tonne.
ECL is also thinking of scrapping all MOAs and supply coal at a notified price. This means there would be no assured quantity for any consumer and A and B grade coal, mostly used for blending, will get into the common pool of supplies.
According to the present MOA, scheduled to be revised on March 31, WBPDCL had asked for the highest quantity of 30 lakh tonne per annum followed by NTPC 20 lakh tpa, DVC 7.8 lakh tpa, CESC 7 lakh tpa, DPL 3 lakh tpa and SAIL 2 lakh tpa.
Except WBPDCL, all the companies have so far lifted almost the entire MOA quantity and WBPDCL’s off-take was 50-55% of the agreed amount, an ECL official said, adding that in cases of low lifting there is no penalty clause because there is huge demand.
Of CIL’s total production A and B grade coal production is only 7%.
According to the official, although R7,000 per tonne is an exorbitant price and consumers don’t want to pay up, ECL can still realise this price if it pushes it to the e-auction route without assuring any quantity to any consumer.
In fact, the floor price for e-auction is set at a 30% premium above the notified price, which means at the present notified rate floor price for A and B grade coal would be R5,200 and R5,190 per tonne respectively and a premium above that can fetch R7,000 or more for every tonne of coal.
So scrapping MOA would by no means be against the interest of ECL, but would hamper consumers’ interest, the official said. Krishna Gupta, managing director of WBPDCL, said even if Rs. 7,000 is a very high price, it is better than not having any assured supply. “In fact, in the MOA the quantity demanded is reserved and thereafter even if it is not lifted there is no penalty. If import prices are low, but there are problems of logistics and inventory, it may put stock position under pressure,” Gupta said. He said the impact of coal price increase would ultimately be passed on to the consumers.
CESC chairman Sanjiv Goenka said his company was aware that the price for MOA coal could go up to R7,000 per tonne, but it was waiting for an official communication and has not decided anything on it as yet. The ECL board would take a final decision on March 28, an ECL official said. ECL’s total production this fiscal is expected to cross 30 million tonne, marginally higher than its production in 2009-2010, he added.
Thursday, 10 March 2011
DVC has nothing to do with power shortage in Delhi.
DVC has nothing to do with power shortage in Delhi.
It is the fault of Government policy.
NEW DELHI: Summer could be a difficult time for Delhiites with discoms already warning of shortfall in power supply. With crucial projects like Damodar Valley Corporation (DVC) those in Jhajjar and Bawana unable to honour the long-term agreements made with discoms, the city could be facing a shortage of about 650MW. While outages might be taken care of, expensive power purchase to meet the shortfall is likely to have an impact on the tariff that are likely to be announced later this year.
In 2010, Delhi's peak demand touched 4,720MW and going by the trend of a 10-12% rise in demand in the last few years, this year the demand could easily cross 5,100MW.
According to sources, BSES will face a shortfall of around 500MW while NDPL will be short by 100 to 150MW. Experts said DVC had already written to discoms saying it would not be able to meet its commitment.
" Delhi is supposed to get 2,250MW from DVC. But in reality it barely supplies 50MW. Two units in Bawana had to be commissioned but no gas is available for them and out of three units of the Jhajjar plant, two units of 250MW each are still not operational. Delhi's demand has grown substantially and this could lead to a major crisis in summer," said a government official.
Sources said options for meeting the shortfall are limited. "To avoid outages, discoms have no option but to buy expensive power from the central pool. Discoms have been pushing for a tariff rationalization for quite some time and claim that financially it will be very difficult to purchase this expensive power. For consumers, this means either no power or expensive power," said an official.
Government officials added there might be some respite if the Centre asks DVC to increase its supply to at least 300-350MW.
TNN | Mar 11, 2011, 03.00am IST
Source: Times Of India
It is the fault of Government policy.
NEW DELHI: Summer could be a difficult time for Delhiites with discoms already warning of shortfall in power supply. With crucial projects like Damodar Valley Corporation (DVC) those in Jhajjar and Bawana unable to honour the long-term agreements made with discoms, the city could be facing a shortage of about 650MW. While outages might be taken care of, expensive power purchase to meet the shortfall is likely to have an impact on the tariff that are likely to be announced later this year.
In 2010, Delhi's peak demand touched 4,720MW and going by the trend of a 10-12% rise in demand in the last few years, this year the demand could easily cross 5,100MW.
According to sources, BSES will face a shortfall of around 500MW while NDPL will be short by 100 to 150MW. Experts said DVC had already written to discoms saying it would not be able to meet its commitment.
" Delhi is supposed to get 2,250MW from DVC. But in reality it barely supplies 50MW. Two units in Bawana had to be commissioned but no gas is available for them and out of three units of the Jhajjar plant, two units of 250MW each are still not operational. Delhi's demand has grown substantially and this could lead to a major crisis in summer," said a government official.
Sources said options for meeting the shortfall are limited. "To avoid outages, discoms have no option but to buy expensive power from the central pool. Discoms have been pushing for a tariff rationalization for quite some time and claim that financially it will be very difficult to purchase this expensive power. For consumers, this means either no power or expensive power," said an official.
Government officials added there might be some respite if the Centre asks DVC to increase its supply to at least 300-350MW.
TNN | Mar 11, 2011, 03.00am IST
Source: Times Of India
Monday, 7 March 2011
Neyveli Lignite Corporation is in rapid expansion mode
Public sector mini rathna Neyveli Lignite Corporation is in rapid expansion mode and has chalked out Rs 40,000 crore investment both in the mining and power generation sectors during the 11th and 12th plans. The 52-year-old company is also venturing into new projects with fuels other than lignite.
During the year ended March 31, 2009, NLC reported lower net profit of Rs 821 crore against Rs 1,101 crore in the previous year even as turnover improved to Rs 3,354.91 crore from Rs 2,981.65 crore in 2007-08. The board has proposed a dividend of Rs 2 per share which will entail an outflow of Rs 335.54 crore.
NLC chairman and MD A R Ansari told media persons in Chennai on Saturday, " We closed the year on a positive note considering the problems we faced. The unprecedented rains in Tamil Nadu affected lignite production causing a generation loss of Rs 293 crore. We also faced many strikes by contract workmen. Still, we achieved the highest ever power generation in the fourth quarter and our growth momentum has now picked up".
He said of the Rs 40,000 crore investment programme, Rs 10,000 crore is already on the floor. With reserves of Rs 5600 crore, it can borrow Rs 13,000 crore. The balance fund requirements will be met out of internal accruals. The ongoing projects will increase its mining capacity from 24 million tonnes to 30.6 million tonnes per annum and power generating capacity from 2490 mw to 3240 mw during 2010.
By implementing the lignite based projects at NLC and at Jayamkondam and coal based power projects in the States of TN ( as JV with TNEB), Madhya Pradesh, Uttar Pradesh and Jharkand and coal mine cum power plants in Orissa and Gujarat, its gameplan is to boost mining capacity to 79.7 million tonnes and power generation capacity to 14,740 mw at the end of 12th plan, Mr Ansari said.
The board has approved its foray into wind power starting with an initial capacity of a 50 mw plant near Tuticorin. This will be raised to 200 mw later. For entering the hydro power sector, it is discussing with Uttrakhand government to put up a 1,000 mw plant at a cost of Rs 6,000 crore.
In a year's time, NLC will work out a plan for entering nuclear energy.
He said the corporation has formed a shell company, NLC Videsh for acquiring coal assets mainly in South Africa and Indonesia and importing the material to set up thermal plants in the coastal regions of East and West. It will take part in tariff based competitive bidding for taking up ultra mega power projects floated by power ministry.
During the year ended March 31, 2009, NLC reported lower net profit of Rs 821 crore against Rs 1,101 crore in the previous year even as turnover improved to Rs 3,354.91 crore from Rs 2,981.65 crore in 2007-08. The board has proposed a dividend of Rs 2 per share which will entail an outflow of Rs 335.54 crore.
NLC chairman and MD A R Ansari told media persons in Chennai on Saturday, " We closed the year on a positive note considering the problems we faced. The unprecedented rains in Tamil Nadu affected lignite production causing a generation loss of Rs 293 crore. We also faced many strikes by contract workmen. Still, we achieved the highest ever power generation in the fourth quarter and our growth momentum has now picked up".
He said of the Rs 40,000 crore investment programme, Rs 10,000 crore is already on the floor. With reserves of Rs 5600 crore, it can borrow Rs 13,000 crore. The balance fund requirements will be met out of internal accruals. The ongoing projects will increase its mining capacity from 24 million tonnes to 30.6 million tonnes per annum and power generating capacity from 2490 mw to 3240 mw during 2010.
By implementing the lignite based projects at NLC and at Jayamkondam and coal based power projects in the States of TN ( as JV with TNEB), Madhya Pradesh, Uttar Pradesh and Jharkand and coal mine cum power plants in Orissa and Gujarat, its gameplan is to boost mining capacity to 79.7 million tonnes and power generation capacity to 14,740 mw at the end of 12th plan, Mr Ansari said.
The board has approved its foray into wind power starting with an initial capacity of a 50 mw plant near Tuticorin. This will be raised to 200 mw later. For entering the hydro power sector, it is discussing with Uttrakhand government to put up a 1,000 mw plant at a cost of Rs 6,000 crore.
In a year's time, NLC will work out a plan for entering nuclear energy.
He said the corporation has formed a shell company, NLC Videsh for acquiring coal assets mainly in South Africa and Indonesia and importing the material to set up thermal plants in the coastal regions of East and West. It will take part in tariff based competitive bidding for taking up ultra mega power projects floated by power ministry.
WBPDCL plans to support its proposed 300 mw plant at Bandel Thermal Power Station with gas supplied by Gail
West Bengal Power Development Corp (WBPDCL) plans to support its proposed 300 mw plant at Bandel Thermal Power Station (BTPS) with gas supplied by Gail. Orders for the project are likely to be placed towards the beginning of the 12th Plan, by which time the gas is likely to be available in Bengal.
"If gas is available through Gail's proposed pipeline, we will set up a combined cycle power plant of 300 mw unit there. This unit will replace the existing first four units at Bandel. Investment for the project is likely to be about Rs 1,200 crore," WBPDCL MD S Mahapatra told ET.
"We will initiate the process of shutting down the first four units in 2009-10. The process is likely to take about a year before we can fully dismantle the units and clear the location for setting up a new power plant. Land availability is a constraint at BTPS, hence the decision to switch to gas powered units," Mr Mahapatra added.
Gail has firmed up plans to build a gas pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. The 870-km pipeline with a capacity to carry 20 million cubic metres natural gas per day and will be connected with the Hazira-Bijaipur-Jagdishpur (HBJ) and Dahej-Hazira pipelines.
The proposed unit at Bandel is likely to consume about 1-1.5 mmscmd of gas. "In 2005, WBPDCL had entered into an agreement with Gail for buying gas from the pipeline they are planning to set up. Although Gail is yet to start supply of gas, the existing agreement has recently been reworked and we have agreed to buy gas at prices that will prevail at the times supply starts," he added.
"Bandel Thermal Power Station (BTPS) has five units, the first four are 80 mw each. These were set up 22-24 years ago and has lived their useful life almost in entirety. Their plant load factor has gone down sharply over the years and we have derated their capacities from 80 mw to 60 mw in the recent past," said Mr Mahapatra. The fifth unit of BTPS has an installed capacity of 210 mw. It will be modernised with aid from World Bank.
Source ET
"If gas is available through Gail's proposed pipeline, we will set up a combined cycle power plant of 300 mw unit there. This unit will replace the existing first four units at Bandel. Investment for the project is likely to be about Rs 1,200 crore," WBPDCL MD S Mahapatra told ET.
"We will initiate the process of shutting down the first four units in 2009-10. The process is likely to take about a year before we can fully dismantle the units and clear the location for setting up a new power plant. Land availability is a constraint at BTPS, hence the decision to switch to gas powered units," Mr Mahapatra added.
Gail has firmed up plans to build a gas pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. The 870-km pipeline with a capacity to carry 20 million cubic metres natural gas per day and will be connected with the Hazira-Bijaipur-Jagdishpur (HBJ) and Dahej-Hazira pipelines.
The proposed unit at Bandel is likely to consume about 1-1.5 mmscmd of gas. "In 2005, WBPDCL had entered into an agreement with Gail for buying gas from the pipeline they are planning to set up. Although Gail is yet to start supply of gas, the existing agreement has recently been reworked and we have agreed to buy gas at prices that will prevail at the times supply starts," he added.
"Bandel Thermal Power Station (BTPS) has five units, the first four are 80 mw each. These were set up 22-24 years ago and has lived their useful life almost in entirety. Their plant load factor has gone down sharply over the years and we have derated their capacities from 80 mw to 60 mw in the recent past," said Mr Mahapatra. The fifth unit of BTPS has an installed capacity of 210 mw. It will be modernised with aid from World Bank.
Source ET
India will add 65,000 MW of power during the 12th five year plan
India will add 65,000 MW of power during the 12th five year plan as various power projects will be commissioned by then, union Power Minister Sushil Kumar Shinde said Sunday.
"India's electricity needs will be solved to a large extent in two-three years after the commissioning of various thermal and hydro-electric power plants now under various stages of construction," Shinde said here after the opening ceremony of a power project.
"These projects will be commissioned well ahead of the end of the 12th five year plan.
"This is for the first time in 60 years (after India's independence) that 9,500 MW power was be added in a single year (April 2009-March 2010)," he said.
The minister said the 65,000 MW would augment India's growth rate in all areas.
The state-owned North Eastern Electric Power Corp (NEEPCO) would set up a 52 MW power plant in western Tripura. The Rs.292 crore plant would be run by water and the heat emitted from its existing 84 MW thermal power project.
The proposed combined cycle extension power plant is to be commissioned at Ramchandranagar, 25 km from here. It is the second of its kind after the Kathalguri gas-based combined cycle project in eastern Assam.
"The new power plant will be commissioned within 30 months from the starting of the work," NEEPCO chairman and managing director I.P. Barooah told reporters.
"The existing 84 MW natural gas-based Ramchandranagar power project, commissioned in 1997, has been discharging on an average 420 degrees Celsius heat following the burning of the gas. The emitted heat involving water will run additional turbines to generate electricity," he said.
Tripura governor D.Y. Patil laid the foundation stone of the project in the presence of Chief Minister Manik Sarkar and state Power Minister Manik Dey besides Shinde.
"India's electricity needs will be solved to a large extent in two-three years after the commissioning of various thermal and hydro-electric power plants now under various stages of construction," Shinde said here after the opening ceremony of a power project.
"These projects will be commissioned well ahead of the end of the 12th five year plan.
"This is for the first time in 60 years (after India's independence) that 9,500 MW power was be added in a single year (April 2009-March 2010)," he said.
The minister said the 65,000 MW would augment India's growth rate in all areas.
The state-owned North Eastern Electric Power Corp (NEEPCO) would set up a 52 MW power plant in western Tripura. The Rs.292 crore plant would be run by water and the heat emitted from its existing 84 MW thermal power project.
The proposed combined cycle extension power plant is to be commissioned at Ramchandranagar, 25 km from here. It is the second of its kind after the Kathalguri gas-based combined cycle project in eastern Assam.
"The new power plant will be commissioned within 30 months from the starting of the work," NEEPCO chairman and managing director I.P. Barooah told reporters.
"The existing 84 MW natural gas-based Ramchandranagar power project, commissioned in 1997, has been discharging on an average 420 degrees Celsius heat following the burning of the gas. The emitted heat involving water will run additional turbines to generate electricity," he said.
Tripura governor D.Y. Patil laid the foundation stone of the project in the presence of Chief Minister Manik Sarkar and state Power Minister Manik Dey besides Shinde.
Friday, 4 March 2011
Damodar Valley Corporation's 500 MW thermal power station in Bokaro is likely to be commissioned in financial year 2012-13
The government today said that Damodar Valley Corporation's 500 MW thermal power station in Bokaro is likely to be commissioned in financial year 2012-13.
"Bokaro-A Thermal Power Station (500 MW) is likely to be commissioned in the 12th Plan in financial year 2012-13," Minister of State for Power K C Venugopal told the Lok Sabha said in a written reply.
According to him, the estimated cost for setting up the plant in Bokaro, Jharkhand, is about Rs 3,550 crore.
Damodar Valley Corp is also setting up another 500 MW plant at Chandrapura in Bokaro.
"The estimated cost for setting up of the Chandrapura Thermal Power Station (CTPS) Extension Units 7 & 8 is Rs 2,611.34 crore. 500 MW of power will be generated from this project," the Minister said.
He noted that commercial operation at CTPS is likely to commence within the 11th Plan period (2007-12). The two units were commissioned in November 2009 and March 2010.
"Bokaro-A Thermal Power Station (500 MW) is likely to be commissioned in the 12th Plan in financial year 2012-13," Minister of State for Power K C Venugopal told the Lok Sabha said in a written reply.
According to him, the estimated cost for setting up the plant in Bokaro, Jharkhand, is about Rs 3,550 crore.
Damodar Valley Corp is also setting up another 500 MW plant at Chandrapura in Bokaro.
"The estimated cost for setting up of the Chandrapura Thermal Power Station (CTPS) Extension Units 7 & 8 is Rs 2,611.34 crore. 500 MW of power will be generated from this project," the Minister said.
He noted that commercial operation at CTPS is likely to commence within the 11th Plan period (2007-12). The two units were commissioned in November 2009 and March 2010.
Thursday, 3 March 2011
The decision will impact NTPC, DVC, the state power utilities of West Bengal, Tamil Nadu, Andhra Pradesh, Haryana and Maharashtra and others
Amidst expectation of the appointment of coal price regulator, Coal India today effected a 30 per cent increase in prices for non-regulated sectors such as cement, iron and steel, aluminium, paper, among many others. The decision will impact captive generation.
Though the regulated sectors, including power and fertiliser, are largely spared from the price hike, a parallel decision to bring parity in the prices of the E & F grades of coal produced by different subsidiaries has made the offerings of Mahanadi Coalfields (MCL) costlier for the power sector by a flat Rs 90 a tonne or 20 per cent. The decision will impact NTPC, DVC, the state power utilities of West Bengal, Tamil Nadu, Andhra Pradesh, Haryana and Maharashtra and others.
The impact is more on the buyers of MCL coal from non-regulated sectors who will now have to fork out 30 per cent over and above the Rs 90/tonne increase. Price of coal for these sectors will move up 54 per cent. National Aluminium Company will be severely hit in this segment.
The buyers of approximately 5 million tonnes of high quality (over 5600 kcal) A and B grade coal of SECL will also be impacted as the notified price of this variety is nearly double to Rs 4,000 a tonne. However, this is still 15 per cent cheaper than the six months average of landed cost of imported coal.
CIL already sells these varieties produced by Eastern Coalfields at similar import-linked prices.
Though the regulated sectors, including power and fertiliser, are largely spared from the price hike, a parallel decision to bring parity in the prices of the E & F grades of coal produced by different subsidiaries has made the offerings of Mahanadi Coalfields (MCL) costlier for the power sector by a flat Rs 90 a tonne or 20 per cent. The decision will impact NTPC, DVC, the state power utilities of West Bengal, Tamil Nadu, Andhra Pradesh, Haryana and Maharashtra and others.
The impact is more on the buyers of MCL coal from non-regulated sectors who will now have to fork out 30 per cent over and above the Rs 90/tonne increase. Price of coal for these sectors will move up 54 per cent. National Aluminium Company will be severely hit in this segment.
The buyers of approximately 5 million tonnes of high quality (over 5600 kcal) A and B grade coal of SECL will also be impacted as the notified price of this variety is nearly double to Rs 4,000 a tonne. However, this is still 15 per cent cheaper than the six months average of landed cost of imported coal.
CIL already sells these varieties produced by Eastern Coalfields at similar import-linked prices.
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