Economic Times - Jaipur

Coal India to Adopt More Transparent Pricing System

Date: 26/03/2018 | Edition: Jaipur | Page: 11 | Source: Debjoy Sengupta | Clip size (cm): W: 35 H: 10

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Extracted Text data: Coal India to Adopt More Transparent Pricing System Dabloy.Sengupta Kolkata: Coal India will adopt a new pricing system from April 1, which the company's chairman said will be more customer friend-ly, transparent and aligned with global norms. Coal India will start charging prices determined on the basis of paise per unit of energy for vario-us grades of coal to be sold from next month. The state-owned company has called a meeting of stakeholders in the power and non-power sec-tors to brief them about the new pricing system, to be notified this week, and clarify any doubts. "We will explain the new system to consumers and take their feed-back, after which prices under the new system will be notified. We will be migrating to an internatio-nal pricing system," said a senior executive of Coal India. "It will be for the benefit of consumers." The grading system based on to-tal energy content per kilogram remains, but the price of each con-signment will be determined by a rate fixed for each unit of energy for that particular grade and the total energy contained in 1 kg of coal for the consignment. "This system will bring in more transparency," said Gopal Singh, Chairman of Coal India. "It will be streamlined and consumer-fri-endly. The new pricing system is based on the global system of coal pricing instead of band-based pri-cing system." This means that the price of each tonne of coal will be based on its total energy content. Under the present system, the pri-ce used to be the same for a range of energy content, which was ca-tegorised as grades. Coal India, however, has reduced the number of grades from 17 earlier to 10 un-der the new system. Each grade, under the new system, will now have a pricing coefficient which would be in paise per kilocalorie or paise per unit of energy. This coefficient, when multiplied with the energy content in each con-signment in gross calorific value (GCV) terms, will determine the price of one tonne of coal for that consignment.