By IANS,
Kolkata : Coal India is likely to implement gross calorific value (GCV) based pricing from January 2012, a top official of the Maharatna company has said.
“As per the direction of the coal ministry, the company is taking measures to equip itself to adopt the new price mechanism – GCV – from January next year,” Coal India Limited chairman N.C. Jha said after announcing the second quarter results Saturday.
Among major coal producing countries, India is the only country which is yet to take GCV standards.
“The new mechanism is expected to expand the range of both the product and price. The higher the GCV content, the higher will be the price,” Jha said.
An official of CIL, the largest coal miner in the world, said: “The GCV-based system will allow a larger number of offerings with a narrower bandwidth of energy content. This may increase the cost for some consumers while other consumers may pay less.”