Coal India needs to raise prices, but caught between political constraints

The state-owned miner needs to raise prices but it is caught between the political constraints on its major buyer, electricity producers and close decision-making control by the coal and power

Last month, Coal India (CIL) Chairman Pramod Agrawal made a case for raising the price of domestic coal, unchanged since 2018. Though he has good reason to argue for the rise, he will probably not be involved when the final decision is made, either way. He will not be the first one.

To test the waters, CIL’s sister concern, Singareni Collieries Company Limited (SCCL), raised by Rs 100 per tonne the price of all types of coal it sells, with effect from April 1. But this is minor. Compared to Indonesian Kalimantan coal ruling at $178 per tonne, CIL and