CIL may raise coal prices on TCI pressure

KOLKATA: Coal India plans to raise prices of some grades of coal after a review at the end of this month but the increase would not be steep, top company executives told ET.

"The CIL management is likely to finalise the issue of fuel supply agreements (FSAs) in the next board meeting. Following this, it will take up the price review. The review may also be discussed at the April 16 board meeting," a senior CIL official said.

Analysts say the company would be under pressure to increase prices after signing FSAs that commit higher supplies than its output. The company's independent directors and The Children's Investment Fund ( TCI) - which holds 1% equity in the miner - have fiercely opposed new supply pacts, but the government has issued a presidential directive forcing the company to sign the agreements.

On January 1, Coal India adopted a new, internationally prevalent pricing system based on gross calorific value.

TCI Against Cheap Coal 15