Domestic coal prices will not fall further: Coal India

January 15th, 2009 - 8:15 pm ICT by IANS  

Kolkata, Jan 15 (IANS) Domestic coal will not get any cheaper, India’s largest coal company said here Thursday.”International prices may fall depending on demand but domestic prices won’t fall further as it is sold at much discounted rates,” Coal India Ltd (CIL) chairman Partha S. Bhattacharyya told reporters on the sidelines of an information technology seminar.

At present, international price of coal is around $75-80 per tonne FOB or freight on board, which specifies which party (buyer or seller) pays for which shipment and loading costs, and where the responsibility for the goods is transferred lies.

The fuel is sold at $20 a tonne in the domestic market, Bhattacharyya said, adding that prices of both coking and non-coking have already decreased quite substantially.

The CIL chairman also said the much debated ‘trigger level’ that power utilities want incorporated in the Fuel Supply Agreement (FSA) may be resolved this month.

India’s largest power producer NTPC Ltd has asked for a ‘trigger level’ or the level of supply below which CIL has to pay a penalty on 90 percent of the total committed coal supplies to power utilities.

No consensus has been reached as yet. “Talks are still on and hopefully something will happen this month,” Bhattacharyya said.

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