Thursday, March 10, 2011

Prices of Coal

The price of coal has been fully deregulated w.e.f. 1.1.2000. Since the coal pricing is deregulated, Coal companies are fixing the price of coal themselves from time to time on the basis of market forces like the demand of coal, increase in the input of cost for producing coal and change in the landed price of the imported coal.

The coal bearing State Governments are benefiting from the enhanced prices as increase in price of the coal leads to the increase in royalty. The royalty paid by the Coal India Limited and its subsidiary companies has increased to Rs.4599.24 crore in 2009-10 from Rs.1897.78 crore in 2000-01.

This information was given by the Minister of State in the Ministry of Coal Shri Pratik Prakashbapu Patil in reply to a written question whether the Government has decontrolled the prices of coal extracted by Coal India Limited (CIL) and its subsidiary companies and the manner in which consumers’ interests are likely to be protected as a result thereof and also the extent to which State Governments are likely to be benefited from the enhanced prices.

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