The government is set to mark up prices of A and B grade coal by 100%, while it has decided to increase prices by 30% for C to F grade of coal. Coal India markets coal from A to E grades, though new grades like F and G are supplied now-a days.
A coal ministry official told FE the CIL board on Friday has decided on the price increase and would likely notify it on Saturday midnight. However this price increase, according to the official, would not apply on the independent power producers (IPPs) using grades of coal below B. But in case of using A and B grade of coal, whose calorific value is considered to be at par with import variety, IPPs would have to pay the higher price.
However, except for the IPPs and regulated sectors, the increase would be applicable to all section of consumers including the commercial power producers.