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Domestic coal prices to see rise this fiscal

09 Feb 2011 Evaluate

Domestic coal prices may see a steep hike this financial year as a result of drop in production growth. The Coal India’s growth in production is likely to be around 2 per cent against a target of 7 per cent. This year the production may rise to 439 million tonne, while it rose 6.8 per cent to 431 million tonne in 2009-10. The target set by CIL this year was around 460 million tonne. The company would also see a wage revision by June or July this year.

Indian coal prices are 50 per cent lower than international prices, as majority of the coal produced in the country are unwashed. The shortfall in coal production compared to projections this fiscal would be about 25 million tones, while it is pegged at  40-44 million tones next year.

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