Coal India Ltd Approves Price Hike for Enhanced Pension Fund Contribution

Coal India Ltd has increased the prices of coking and non-coking coal by Rs 10 per tonne, effective April 16. This adjustment, supporting the Coal Mines Pension Scheme 1998, might impact various sectors. Despite production challenges, CIL targets improved financial performance and revenue growth through adjusted logistics costs.

State-owned Coal India Ltd has announced a price increase of Rs 10 per tonne on both coking and non-coking coal. This decision, effective from April 16, aims to bolster the contributions to the Coal Mines Pension Scheme-1998.

The price adjustment affects both regulated and non-regulated sectors, with potential impacts on Coal India's market position and revenue streams. In particular, Eastern Coalfields Ltd, a CIL subsidiary, previously hiked the add-on price in the Rajmahal area of Jharkhand, resulting in an anticipated revenue increase of Rs 300 crore annually.

Despite a reported 3.1% dip in coal production in March, CIL managed a 1% growth over the past year and remains a significant player, accounting for over 80% of India's domestic coal output. Production projections for FY24 aim to surpass last year's figures with logistical cost adjustments leading the strategy.

(With inputs from agencies.)