1 Feb 2012

Corporate Subsidies Anyone?


NEW DELHI, JAN 31: 
Buckling under consumer pressure, Coal India Ltd has rolled back the price hike proposed under its new Gross Calorific Value-based pricing mechanism effective January 1.
Coal India will delink the rates from international parity prices, said Mr N. C. Jha, Chairman. This would eventually reduce the prices for different grades of coal. However, the GCV-based grading of coal will continue and the anomalies in the pricing structure will be set right, he added.
Coal India switched to the GCV-based pricing mechanism in line with the international norms and had proposed an average of 12.5 per cent hike in prices.
This had evoked strong protest from consumers in sectors such as power, cement, steel and aluminium. In the earlier Useful Heat Value (UHV) method, the pricing was decided on the ash and the moisture content in coal. 

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