State-backed Coal India has gone in for selective price hikes of 10% for coal produced by subsidiary Western Coalfields (WCL), in keeping with its existing strategy to help the subsidiary earn reasonable profits on its new projects.
The revenue impact of this price hike would be only about Rs139.84 crore for the remaining period of this fiscal as WCL contributes just 42 million tonne out of 452 million tonne of Coal India's total output.
This hike is restricted only to quality bands of G-6 to G-17, that is, from 2,200 kilo calorie per kg to 5800 kcal/kg.
Coal India's board, which met in New Delhi on Monday, also decided to hike "coal sizing charges" and "rapid loading charges" for all its subsidiaries. The company will thus earn an additional Rs197.21 crore till March. Monday's charges follow the hike in transportation charges in November.
But the news would disappoint markets today as they were expecting a significant bonus announcement. Analysts were expecting Rs15-18 a share, considering that last year it paid a total of Rs14 a share.
Company officials said special dividend was not even on the Monday meeting's agenda.
In anticipation that Coal India would announce a special dividend instead of going in for a 5% disinvestment, its workers have already deferred indefinitely their proposed three-day strike beginning today.
Meanwhile, a Bloomberg report citing two knowledgeable company officials said that Coal India will double its reserves after gaining 116 mines.
The company expects to add about 18.6 billion tonne in extractable reserves from the new mines based on initial estimates, the people told the newswire.
Coal India has 18.2 billion tonne in reserves now, according to a November presentation on its website.
Additional reserves will allow Coal India greater scope to expand output, as delayed mining approvals and difficulties acquiring land constrain projects.
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG7UHKkCXtetU3_igDkbbk8ILtwEw&url=http://www.dnaindia.com/money/report-coal-india-raises-western-coalfields-prices-selectively-1936448
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