Coal India Ltd.

In a move that could benefit cement and sponge iron companies, Coal India (CIL), the world's largest coal miner, is mulling to cut prices of its high-quality coal corresponding to the A and B grades of the earlier useful heat value (UHV) system.

With global prices declining from $120 a tonne in January 2012 to below $85 now, the prices of CIL's A and B grade coal have already become higher than international benchmarks.

This move comes at a time when company’s two large consumers of high quality coal, Damodar Valley Corporation (DVC) and Gujarat State Electricity Corporation Ltd (GSECL), raised objections to the prices being charged by the coal mammoth.

The company reported 39.17% rise in its net profit at Rs 1696.92 crore for third quarter ended December 31, 2012 as compared to Rs 1219.33 crore for the same quarter in the previous year. Total income of the company has increased by 38.25% at Rs 2158.04 crore for the quarter under review as compared to Rs 1560.97 crore for the quarter ended December 31, 2011.