CIL’s notified prices for coking coal to guide market: Analysts

Kolkata: Coal IndiaNSE -2.51 %’s notified prices for coking coal will remain the major factor in the market as the representative prices based on the Centre’s national coal index are much higher, senior executives and analysts said.

Last week, the coal ministry rolled-out a national coal index based on weighted average prices of CIL’s notified, e-auction and import prices for all sectors. Based on the index, it computed representative prices of each grade of coal. These prices will be used to calculate the percentage of revenue a bidder agrees to share with the government while bidding for them at an upcoming block auction. They will sell coal in the open market.

National coal index-based representative price of G17, a grade with one of the lowest energy content among CIL’s non-coking coal product basket, is slightly lower than Coal India’s notified price for the non-power sector by 0.19% but this category was barely 0.2% of Coal India’s sales in 2018-19.