Coal India surges 3%; CMD shares view on freight hike

Coal India shares gained about 3 per cent in intraday trade today. In a chat with ET Now, Sutirtha Bhattacharya, CMD, Coal India, shares his views on this gain in the stock price and the impact of freight hike on the industry. Edited Excerpts.

ET Now: Give us an initial sense of the freight hike impact on coal prices and a company like Coal India.

Sutirtha Bhattacharya: Railway account for more than 70% of our coal dispatch. The freight increase that has been brought does not affect Coal India per se. Our coal supply price at destination will be less than the substitute cost.

ET Now: You are saying you will not be impacted because you will indeed pass it on to your consumers as is?

Sutirtha Bhattacharya: Yes, that is what I said. As soon as the coal is despatched, the cost of freight goes to the customer.

ET Now: What is the expected increase in coal prices because of the hike in freight?

Sutirtha Bhattacharya: We are not increasing the coal price. Different sectors will be able to tell depending upon their distance, the power plant or the other plants they are taking.

ET Now: Does this this price hike in anyway even marginally impact the operational picture for Coal India or not quite?

Sutirtha Bhattacharya: It does not.