SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Coal prices likely to be revised by month end: Coal Minister

25 Jan 2012 Evaluate

The Coal Ministry has said that coal prices under CIL's new pricing mechanism will be revised downward by the end of the current month. Coal Minister Sriprakash Jaiswal was coted saying that Coal India (CIL) had made some mistake in the system adopted for pricing of coal (as per the new formula) and in his opinion the price fixed was more than required. A lowering of prices could be expected by 30 January. He however clarified the GCV-based pricing for coal will not annulled.

Earlier this month, the state-run miner decided to benchmark the pricing for non-coking coal to gross calorific value (GCV) from the current useful heat value (UHV) based gradation. GCV pricing mechanism came into force on January 1. Inspite of the fact that the Coal Ministry had indicated the new formula would be revenue-neutral, it had led to an increase in rates of the fossil fuel. Till December 31, 2011, CIL had followed a pricing mechanism based on the Useful Heat Value (UHV) of coal, which deducted ash and moisture content from the standard formula. However, from January 1, it shifted to a new pricing mechanism based on the GCV of coal. Under this system, coal prices have been linked to the actual calorific value or quality of coal.   

The new GCV mechanism has been opposed by consumers across sectors, including power, cement, aluminium and steel, as they feel that prices have risen substantially and this will necessitate in a price increase in their own respective commodities.

 

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×