Coal India Ltd.

State-owned, Coal India (CIL) is likely to restructure coal prices from January as it is going to follow the pricing based on the Gross Calorific Value (GCV) method against fixed pricing for seven grades of coal, based on Useful Heat Value norms.

The company has initiated the process to determine the GCV of coal of all mines and buying adequate numbers of calorie measurement meters to do so. Presently, there are seven grades so there are seven different fast prices. Currently these grades are wide while under the GCV method, the bands will be narrower closely resembling their quality. However, coal meant for e-auction will be sold at market determined prices. Currently e-auctions make for 10-12% of the total sales and comprise around 25-30% of the company's revenue.

The company’ net profit for the quarter ended September 30, 2011 stood at Rs 1080.66 crore. The company’s total income at Rs 1402.97 crore for the quarter under review. On consolidated basis, group has reported a net profit and a total income at Rs 2593.11 crore and Rs 14942.27 crore respectively for the quarter ended September 30, 2011.