The CIL board is likely to meet today to examine the new coal pricing mechanism, a top company official said.
“The talks are underway,” said NC Jha, chairman and managing director, Coal India (CIL). “We have been asked to work out on prices of coal (under the new pricing mechanism). We will take it to board on January 30 as it is the deciding authority.”
Coal minister Sriprakash Jaiswal had said earlier: “CIL has made some mistake in the system adopted for pricing of coal.”
Coal India shifted to a new pricing mechanism from January 1. Under this system, prices have been linked to the actual calorific value or quality of coal. The new pricing mechanism resulted in an increase in rates of the fossil fuel though the coal ministry had indicated the new formula would be revenue-neutral.
Till December 31, CIL used to follow a pricing mechanism based on the Useful Heat Value of coal, which deducted ash and moisture content from the standard formula.