Coal India shifts to a globally accepted pricing method from Monday

NEW DELHI: Coal India will from Monday price coal on gross heat value method – a globally accepted pricing mechanism for the fuel. The new system is not likely to lead to any significant change in the pricing, an official statement said.

“The ministry of coal is migrating to gross calorific value based grading system for non-coking coal from the existing useful heat value based system with effect from January 1, 2012,” it said.

The statement said the new system will incentivise quality improvement resulting in delivery of quality coal to consume and commensurate revenue realisation for coal companies.

The new system is being introduced based on recommendations of Integrated Energy Policy and expert committee on road map for coal sector reforms.