SCCL contemplates hike in coal prices
Singareni Collieries Company Limited (SCCL) is contemplating hike in coal prices in view of increasing production costs and pressure on the company's financial health.
By PTI |
HYDERABAD: State-owned Singareni Collieries Company Limited (SCCL) is contemplating hike in coal prices in view of increasing production costs and pressure on the company's financial health.
"There is a definite possibility of the price hike. We will discuss the issue at the SCCL Board and also with the government," company Chairman and Managing Director of the company R H Khwaja told reporters here on Tuesday.
SCCL, the sole producer of coal in south India, accounting for 9 per cent of the country's coal production, had achieved a record coal production of 36.13 million tonnes in 2005-06 and set a target of 37.50 million tonnes this year.
Though the price hike was on the company's agenda, care would be taken to see that the power utilities and industrial customers were not burdened, the CMD said.
SCCL, which was in losses for several years before finally achieving profits in 2003-04, serves not only major power houses and cement industries in Andhra Pradesh, Karnataka, Maharashtra and Gujarat but also about 5,000 customers across various industries.
ADVERTISEMENT
The company's average cost of coal production is Rs 945 per tonne while the average sale price is Rs 1,018 per tonne. This is already high as compared to Mahanadi Coalfields whose average cost of production is Rs 202 per tonne and sale price is Rs 398 per tonne.The price variation was due to the difference in production ratio between open cast mining and underground mining, the official said.
Reducing the prodcution cost, adoption of modern technologies and mining methods, cutting down wastage and improving operational efficiency were among the challenges being faced by the company, Khwaja said.
With over 86,000 strong workforce and operating 58 mines, 47 underground and 11 open casts, the SCCL had earned a net profit of Rs 182.35 crore during 2005-06.
ADVERTISEMENT
The company accounts for about 58 per cent of the state's thermal power while 92 per cent of the coal produced by it is already tied-up for supply to various industries under Fuel Supply Agreement (FSA).Meanwhile, the SCCL bagged a prestigious national award for environmental excellence for 2006.
ADVERTISEMENT
The Energy and Resources Institute (TERI) award was presented to the company CMD by President A P J Abdul Kalam in the national capital on Monday.The company was selected for the award, from among 125 competitors, for its initiatives in promoting eco-friendly coal mining practices.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
