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Coal India Plans To Increase Prices Slowly As Asian Coal Prices Hit All-Time Highs: Report

Coal India Plans To Increase Prices As Asian Coal Prices Hit All-Time Highs: Report

Coal India: The firm’s inventory has surged by over 20 per cent in over three weeks

Coal India Ltd is planning to extend the costs of coal slowly after contemplating the views of all stakeholders, the state-run miner’s chairman mentioned on Wednesday, as Asian coal costs hit all-time highs.

Asian coal costs from exporters Australia and Indonesia, and the most-traded thermal coal futures contract on China’s Zhengzhou Commodity Exchange touched report highs just lately attributable to sturdy energy consumption.

“We cannot increase the price of coal abruptly. It can only be increased slowly, and that we are planning (to do),” Coal India Chairman Pramod Agrawal informed shareholders on the firm’s annual common assembly.

The world’s largest coal miner, which accounts for over 80 per cent of India’s output of the gas, final raised coal costs in 2018, and is mostly not aggressive with pricing.

“Coal India is planning to increase the price but taking the views of all the stakeholders and getting them on board is essential before we take a decision, because it affects the price of the energy in the country,” Agrawal mentioned.

The firm’s inventory has surged by over 20 per cent in over three weeks to a three-month excessive on Wednesday, bouyed by a step up in manufacturing attributable to a surge in demand for coal-fired electrical energy as coronavirus-related curbs are eased throughout India.

In reply to a query by a shareholder about the potential of a demerger of Coal India subsidiaries, Agrawal mentioned there was no such plan.

“There is no such thinking even in the government, that some of the subsidies may get demerged from Coal India,” he mentioned.

Agrawal additionally mentioned that the corporate most well-liked giving dividends over share buybacks as a result of buybacks attracted double the taxes, as each Coal India and its items had been taxed.

“We are requesting the government to change that mechanism, and if that is changed, perhaps we can go for buyback as well,” he mentioned.

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