| News & Trends | ||
| Switch to new pricing scheme in calibrated way - CIL CMD - 27 Jan, 2012 | ||
|
Source - CNBC-TV18 Speaking to CNBC-TV18, Mr NC Jha chairman of Coal India said that the switch to GCV has led to huge rise in C, D and part of E quality coal. Shares of Coal India came under pressure after coal minister Mr Sriprakash Jaiswal said the PSU major will implement the new pricing mechanism by the month-end but will ensure this will not result in higher prices for power producers. Earlier this month, the state run miner decided to benchmark the pricing for non coking coal to gross calorific value from the current useful heat value based gradation, a move that is expected to push up costs for cement and steel makers. Speaking to CNBC-TV18, Mr NC Jha chairman of Coal India said the switch to GCV has led to huge rise in C, D and part of E quality coal. This has created a problem among consumers feel that they have been asked to pay higher prices, he said that "We have no directive from the coal ministry on coal price issue." According to Mr Jha, the rationalisation of prices will now happen in a calibrated manner but there is no hold on the switch to GCV. With the new pricing norm set by Coal India for pricing of coal, India's largest power producer NTPC has signaled a hike in tariff rates by as steep as 30 to 40%. He said that "The aim is not to improve profitability by GVC switch adding that we will work out the timeline of price increase in a week." Below is an edited transcript of Mr Jha's exclusive interview on CNBC-TV18. Q - What kind of pricing mechanisms are now being spoken about by the coal minister and how much of a reduction in prices would you have to effect? A - The issue is that the government had asked us to switch over to the gross calorific value based pricing system from the earlier useful heat value based. We have implemented this from January 1. Now, while working out this, our basic strategy had been to find out what is the discount presently available to the consumers compared to the import parity price. We saw that the discount was ranging from about 25%, at the highest quality level, down to about 77% from the import parity price and there was unevenness in between. To read full transcript, please visit www.steelguru.com | ||
|
| ||
| Announcements | ||
 | Iranian steel market trend in week 07 2012 - Long products | |
|
| GMS weekly report on Pakistan ship breaking industry for WEEK 07 2012 | |
