Coal index launching soon to track the coal price movement in India
India's leading e-commerce company Mjunction Services Ltd will launch the index in the second week of July, a company official said Tuesday.
"A present there is no credible price index to track coal prices in the country. There are four coal indexes all over the world. Soon we are going to get one," Viresh Oberoi, managing director and chief executive of Mjunction (formerly Metal Junction), told IANS here.
The four existing coal indexes are: South African Richards Bay Coal - API-4, Australian New Castle Coal - API-3, Japan Power Utility Index and ACR Asian Index.
At present, nobody has a clear idea about the price movement. Once the index is launched, it would give crucial information about prices to those who want to trade in future contracts, he said.
"We will track the coal prices scientifically and publish it on our website as MJ Coal Index for the benefit of buyers, traders and industry at large," Oberoi said.
"At present, there are 440 varieties of coal available in India. With no scientific method to track the price movement it is difficult for the Indian buyers to hedge their risk against coal price volatility," he added.
The index would be calculated on the basis of weighted price average of coal computed from the price of different grades of coal tendered at various coal mines across the country.
"It would reduce the role of middlemen in the business and help buyers know the right prices of coal," he said.
Last updated on Jun 30th, 2009 at 18:20 pm IST--IANS
Government of India deregulated the prices of Non-Coking Coal of grades A,B & C, Coking coal and Semi/Weakly coking coal on 22.03.1996. Subsequently, on 12.03.1997, Government of India deregulated the prices of non-coking coal of grade D, Hard Coke and Soft Coke and also allowed Coal India Ltd. to fix coal prices for grades E, F & G till Jan'2000 once in every six months by updating cost indices as per escalation formula contained in the 1987 report of the Bureau of Industrial Cost & Prices. With effect from 01.01.2000, CIL was free to fix the prices of such grades of coal in relation to the market prices.
Pursuant of the above, CIL fixed the prices of deregulated coal from time to time and last such revision has been made on 12.12.2007
Grade wise Basic Price of coal at the Pit-head excluding statutory levies for Run-of-mine (ROM) Non-Long-Flame Coal ,Long flame Coal, Coking Coal, Semi Coking Coal& Weakly Coking Coal ,direct feed Coal, Assam Coal for various subsidiaries of CIL are tabled below :
Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal
In super session of this office price notification no. CIL: S&M:GM(F): Pricing: 289 dated 15.06.04, the pit head prices of all grades of coal produced by Coal Companies of Coal India Limited are being revised with effect from mid night of 12th December,2007 i.e. Zero Hours of 13th December.,2007. The revised pithead prices of all varieties of Run of Mine Coals have been given in tables I to V.
Notes : 1.Additional Rs.15 shall be charged on pithead price of Run of Mine coal for the supply of Slack Coal.
2. Additional Rs.165 shall be charged on pithead price of Run of Mine Coal for the supply of Steam Coal.
3.Where the top size is being limited to any maximum limit within the range of 200 mm – 250 mm through manual facilities or mechanical means, a charge at the rate of Rs.35.00 per tonne will be levied, in addition to the price applicable for Run of Mine coal.
4.Where the top size is being limited to 100 mm through manual facilities or mechanical means, a charge at the rate of Rs.55.00 per tonne will be levied, in addition to the price applicable for Run of Mine coal.
5.Where the top size is being limited to 50 mm through manual facilities or mechanical means, a charge at the rate of Rs.70.00 per tonne will be levied, in addition to the price applicable for Run of Mine coal.
6.Where coal is loaded, either into Indian Railways system or into the purchasers' own system of transport, through high capacity loading system with a nominal capacity of 3500 tonnes per hour or more, additional charge of Rs.18.00 per tonne shall be levied for such loading.
7.While the coal is transported beyond a distance of 3 kms to the loading point, the coal companies shall be entitled to charge additional transport costs from the purchasers at the following rates, namely:
1.For a distance of more than 3 kms but not more than 10 kms Rs.40.00 per tonne.
2.For a distance of more than 10 kms but not more than 20 kms Rs.70.00 per tonne.
In cases, where coal is transported for more than 20 kms to the loading points, transport charges will be payable on actual basis, to be borne by the purchaser.
8.The pit head prices fixed are exclusive of Royalty, Cess, Taxes and Levies, if any, levied by the Govt., Local Authorities or any other bodies of Excise and Sales Tax from time to time.
9.Grading/ classification of coal and the definitions relating to the same have been given in Annexure –X.
10.The prices given in this notification are either FOR or FOB, as the case may be . Surface transportation charges, where applicable, would be levied extra .
11.The prices do not apply to coal sold for export .
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