Diesel Price Hike to Impact Coal India by 
600 Cr a Year
Bangalore: The hike in diesel prices will put an additional burden of 
600 crore per annum on Coal India in the production of coal, a top company official said.
"For each Re.1 hike in diesel prices, the impact is 120 crore and so for a hike of 5, the annual impact would be 600 crore," Coal India Chairman and Managing director S Narsing Rao told reporters on the sidelines of the company's annual general meet.
When asked if the PSU would revise coal prices, Rao said, "We will see". For each tonne of coal production, the diesel cost is 55, Rao said. According to Coal India officials, the average cost of production per tonne is about 560-570 and based on this the impact of fuel price hike is close to 10 percent. Speaking in the AGM, Rao said he expects some of the de-allocated coal blocks, following the coalgate to come to the Coal India stable.
However, there was no decison as yet regarding this in the Coal Ministry. Speaking about Fuel Supply Agreement (FSA) and price- pooling, Narsing Rao assured shareholders that under no circumstances the final financial and legal interest would be jeopardised for signing the agreement.
Source: PTI
600 crore per annum on Coal India in the production of coal, a top company official said.
"For each Re.1 hike in diesel prices, the impact is 120 crore and so for a hike of 5, the annual impact would be 600 crore," Coal India Chairman and Managing director S Narsing Rao told reporters on the sidelines of the company's annual general meet.
When asked if the PSU would revise coal prices, Rao said, "We will see". For each tonne of coal production, the diesel cost is 55, Rao said. According to Coal India officials, the average cost of production per tonne is about 560-570 and based on this the impact of fuel price hike is close to 10 percent. Speaking in the AGM, Rao said he expects some of the de-allocated coal blocks, following the coalgate to come to the Coal India stable.
However, there was no decison as yet regarding this in the Coal Ministry. Speaking about Fuel Supply Agreement (FSA) and price- pooling, Narsing Rao assured shareholders that under no circumstances the final financial and legal interest would be jeopardised for signing the agreement.
