Kolkata: Coal India has received encouraging response from consumers in lifting coal beyond trigger levels after it withdrew performance incentive riders on supply of coal.
"The response is good from our customers and we find coal is lifted beyond the trigger level of 90 per cent since the performance incentive Coal India was supposed to be charged for supply beyond certain levels," Coal India director marketing S N Prasad told PTI.
High grade coal of Eastern Coalfield (Ranigunj) and South Eastern Coalfields has benefitted from this development since the incentive was withdrawn in February. NTPC, WBPDCL, DVC and consumers of states like Madhya Pradesh, Rajasthan and others including non-power consumers are taking advantage of the relaxation, CIL officials said.
Prasad, however, did not quantify the rise but said the step has evoked good response in pushing high grade coal sale which is priced at around Rs 3,500 a tonne against low grade coals selling at even Rs 700 a tonne.
High grade coal accounts for 8 per cent of Coal India's total production (G-I to G-5) of coal which is around 43 million tonnes. Speaking on special forward e-auction of coal, Prasad said out of 3.5 million tonnes (MT) of coal was put on offer in April 3.3 MT was booked and now CIL was considering higher allocation from this channel.
The reserve price of coal sold to power and non-power through this channel is 10 per cent higher than the notified price....