Coal India zooms post increase in thermal coal prices

Coal India soared on the bourses on Tuesday after the company revised its non-coking coal prices.

The company in it meeting held on Monday, January 8 approved revision of non-coking coal prices which will be applicable to all subsidiaries of Coal India including North Eastern Coalfields. The prices will be effective from January 9.

The company will earn incremental revenue of Rs 1,965 crore for the remaining period of FY18 whereas the projected annual incremental revenue is around Rs. 6,421 crore. This additional revenue will cover an additional outgo of about Rs. 5,700 crore on account of 20 per cent salary hike for workmen and an outgo of Rs. 800 crore salary hike for officers that the company had announced earlier.

This move will make power generation costlier, also the cost of fertiliser and cement production is also expected to rise.Last month, Coal India had levied evacuation charges of Rs. 50 per tonne which in turn is expected to earn Rs. 800 crore this year and Rs 2,500 crore annually for the company.

At 15:03 hours, the stock of Coal India was trading at Rs. 304.45 per share, up Rs 17.00 or 5.91 per cent on NSE. The stock attracted a traded volume of 2,56,29,641 on NSE. The share touched its 52-week high Rs. 332.10 and 52-week low Rs. 234.00 on February 27, 2017 and August 11, 2017, respectively on BSE.