Coal India to switch over to GCV-linked coal pricing

Coal India to switch over to GCV-linked coal pricing

Kolkata: Coal India Ltd is set to switch over to quality-linked pricing of the fuel and is holding negotiations in this regard with power generating firm NTPC.

“We are planning to make sub-grades of coal we sell and fix the price based on quality of coal in the wake of complaints on demand from the coal consumers," CIL chairman Partha S Bhattacharyya told PTI.

Bhattacharyya said sub-grading of coal would be based on gross calorific value (GCV) and not useful heat value (UHV).

“We intend to sub-grade a quality of coal with difference of 150-200 in calorific value between two sub-grades," Bhattacharyya said.

This would help CIL in fixing coal price based on exact nature of quality and help the consumer for more accurate costing of produce as under the UHV system the price range of coal for each major grades is huge.

Bhattacharyya said state-run NTPC Ltd was keen to buy coal categorised in GCV pricing system and talks were already going on between the two in this regard.

On the other hand, CIL has also initiated steps to improve consistency in coal quality.

“To achieve consistency in coal quality we will install coal washeries in association with private participation. By 2010-11 we want to wash coal totalling 140 million tonne," Bhattacharyya said.

Tenders for coal washeries would be invited very shortly, he added. PTI BSM MD RGD UPD