Costlier diesel to impact Coal India by Rs 600 cr a year: Rao

Speaking in the AGM, Rao said he expects some of the de-allocated coal blocks, following the coalgate to come to the Coal India stable.

FP Archives|Dec 20, 2014, 12:05:21 IST

Kolkata: The hike in diesel prices will put an additional burden of Rs 600 crore per annum on Coal India Ltd in the production of coal, a top company official said today.

"For each Re 1 hike in diesel prices, the impact is Rs 120 crore and so for a hike of Rs 5, the annual impact would be Rs 600 crore," Coal India, chairman and managing director, S Narsing Rao told reporters in Kolkata on the sidelines of the company's annual general meet.[caption id="attachment_460328" align="alignleft" width="380"] Coal India, chairman-cum-managing director, S Narsing Rao. Image courtesy CIL[/caption]

When asked if the PSU would revise coal prices, Rao said, "We will see."

For each tonne of coal production, the diesel cost is Rs 55, Rao said.

According to Coal India officials, the average cost of production per tonne is about Rs 560-570 and based on this the impact of fuel price hike is close to 10 percent.

Speaking in the AGM, Rao said he expects some of the de-allocated coal blocks, following the coalgate to come to the Coal India stable.

Brent crude flirts with $100, reigniting inflation and forex concerns for India

Experts say a prolonged rally above $100 per barrel is unlikely, but sustained high oil prices could push up inflation, widen the current account deficit and pressure the rupee.

2 min read

Can a record May offset a shrunk international schedule and help IndiGo turn a profit?

Record domestic market share boosts operating performance, but forex losses, rising oil prices and geopolitical disruptions could weigh on IndiGo's bottom line.

3 min read

China has dominated Myanmar’s rare earth mines — now India eyes deal to harness country’s critical minerals

India is deepening rare earth cooperation with Myanmar as New Delhi seeks alternative sources of critical minerals dominated by China, including dysprosium and terbium used in EVs, defence systems and clean energy technologies

6 min read

JPMorgan to hire 1,000 technology professionals for India GCCs amid AI-led transformation

Wall Street banking giant to expand hiring across cloud, cybersecurity and AI data pipeline roles as it strengthens its India Global Capability Centres despite AI-driven workforce optimisation.

1 min read

BOJ seen raising interest rates by December as weak yen fuels inflation risks

Majority of economists expect Japan's central bank to deliver a 25-basis-point rate hike by year-end, with further policy tightening likely through 2027.