Coal consumers body demands price roll back
April 19th, 2011 - 11:14 pm ICT by IANSKolkata, April 19 (IANS) The Coal Consumers’ Association of India (CCAI) Tuesday said the recent price hike in coal by Coal India Limited would hit major sectors of the economy, especially cement and steel, and demanded a roll back.
“Coal India Limited increased A and B grades coal prices by 150 to 160 percent and C grade coal prices by 30 percent Feb 27 this year. The price hike is applicable to steel, sponge iron and cement sectors. And it will not be applicable to power utility and fertilizer sectors,” said CCAI president P.K. Chand.
“The basic that has been said by the Coal India Limited is that the price hike is to set the prices of domestic coal to the international standard, which to our mind is not correct. Because there are basic differences between domestic coal and imported coal. Quality of imported coal is very consistent. But in India the coal is not of the international quality,” said Chand, who is chief financial officer of Birla Corporation Limited.
“If the price hike is not rolled back then coal cost of cement industry would be increased by 40 percent. A 4 million tonnes cement plant will have to incur Rs.125 crore more due to the coal price hike. Overall the total cost of cement industry will be increased by 15 to 20 percent and there will be price hike of Rs.9 to Rs.10 per bag,” he added.
“Steel sector is also badly affected due the coal price hike. Total cost of steel sector will be increased by 15 to 20 percent,” said B. Bhushan Agarwal, vice-chairman and managing director of Shyam Group of Industries.
Shashi Kumar, former Chairman of Coal India Limited and CMD of Indian Mining Consultancy (Pvt) Ltd, said: “Certain consumers have been very significantly hurt in the price increase and certain others have been left untouched. This has never been the case in price increase earlier. A clear-cut distinction has been made this time. Such absolute power of Coal India Limited should be used with certain amount of restraint. This is lack of thinking behind what has been done.”
“We have already written to the Coal Ministry to roll back the price hike. We will make representation to the prime minister. A special committee is needed to deal with the case,” Chand said.
- Consumer body for rollback of new coal pricing - Jan 19, 2012
- Coal India rolls back recent price hike - Jan 31, 2012
- Excise duty on coal to increase cement prices: Birla Corp - Mar 01, 2011
- Sponge iron units demand rollback of coal price hike - May 05, 2011
- Hike in iron ore export duty irks Goa mining industry - Jan 04, 2012
- Coal shortfall hits steel production in Bengal - Oct 18, 2011
- FICCI calls for radical policy reforms in energy sector - May 07, 2012
- Sale of flats declining in first half of this fiscal: Study - Oct 06, 2010
- Calcutta power utility earns Rs.4,000 crore in FY11 - Apr 29, 2011
- Bengal's secondary steel sector face raw material shortage - Jan 26, 2011
- Love your morning cuppa? Get ready to pay more - Feb 09, 2012
- Budget allows airlines to access foreign funds (Second Lead) - Mar 16, 2012
- Coal shortage could hit hard power projects - Oct 09, 2011
- Auto, realty sectors unhappy at interest rate hike (Lead) - Jul 26, 2011
- Jewellers criticise hike in import duty on gold - Mar 16, 2012
Tags: b bhushan, body demands, ccai, cement industry, cement plant, cement sectors, coal consumers, coal india limited, coal price, coal prices, coal quality, consultancy pvt, consumers association, domestic coal, fertilizer sectors, price hike, rs 125, sectors of the economy, sponge iron, steel sector