Informist, Monday, Oct 18, 2021

--Source: Singareni Collieries hikes coal prices by 6% 
 

HYDERABAD - Singareni Collieries Co Ltd, a major source of coal in south India, has raised its coal prices by 300 rupees per tn with immediate effect, a source told Informist. 

Singareni had last increased its prices in March and this time, the hike is around 6%, the source said. The latest price hike is due to higher demand and increased handling costs.

The company now sells Grade-1 coal at 5,210 rupees per tn, Grade-2 at 5,000 rupees, Grade-3 at 4,910 rupees and Grade-4 variety at 4,860 rupees per tn.

Singareni Collieries supplies coal to NTPC Ltd’s 2,600-MW Ramagundam power plants, besides supplying coal to power units operated by state government utilities of Telangana, Karnataka and Maharashtra.

The company is currently supplying 175,000 tn per day to power plants after suspending supplies to other sectors.

The company is also reducing supplies to the power plants located near the mining sites, prioritising the plants at a distance to avoid last minute shortages at such plants, the source said. Power plants that currently depend on Singareni have coal reserves of five days, the source said.

While Singareni has hiked prices, the country's largest coal producer Coal India is yet to take a final call on an increase.

Coal India officials have recommended a 10-11% hike in average coal prices but the company's board is yet to take a call. The decision of the board will then be subject to approval from the coal ministry, a senior official of the company said.

At 1342 IST, shares of Coal India were up 0.7% at 185 rupees, while those of NTPC were 0.3% lower at 149 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Narayana Krishna

Edited by Shirsha Thakur

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