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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

Domestic Price Fixation (http://www.coalindia.nic.in/pricing.htm)

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 :

Table-I

Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal (In Rupees/ Tonne)
Field/ Co.	A	B	C	D	E	F	G
ECL(for 8 units vide Annex II)	1490	1340	1120	900	680	530	370
ECL/ Mugma(for 16 units vide Annex IV)	1710	1520	1300	1080	860	640	420
ECL/ Rajmahal	-	-	-	-	890	760	610
BCCL	1440	1310	1090	900	720	570	410
CCL	1470	1330	1110	910	720	570	410
NCL	1350	1220	1000	840	670	530	390
SECL	1190	1110	950	800	660	520	390
MCL	1160	1030	860	720	560	440	320

Annexure

Table-IA

Basic Price of Run of Mine of Other Coal (In Rupees/ Tonne)
Field/ Co.	A	B	C	D	E	F	G
ECL/ Raniganj(for 104 units vide Annex I)	1910	1800	1580	1360	850	630	420
ECL/ SP Mines(for 2 units vide Annex III)	2060	1840	1620	1400	940	720	500
CCL ( for 7 units vide Annex VI)	1760	1580	1360	1140	900	680	460
CCL( for 16 units vide Annex VII)	1650	1500	1280	1070	-	-	-
WCL	1450	1380	1280	1210	990	780	590
SECL Premium Collieries Coal produced in Korea Rewa Coalfields)	1460	1380	1180	1010	790	570	400

Annexure

Table-IB

Basic Price of Run of Mine Long-Flame Non-Coking Coal (In Rupees/ Tonne)
Field/ Co.	A	B	C	D	E	F	G
ECL/ Rajmahal	-	-	-	1160	-	-	-
BCCL Long Flame Coal	1610	1460	1240	1050
NCL Long Flame Coal	1520	1380	1160	980	-	-	-
SECL Long Flame Coal of Korba & Raigarh Coalfields	1320	1240	1070	920	-	-	-
MCL Long Flame Coal	1300	1170	980	840	-	-	-

Annexure

Table-II

Coking Coal (Run of Mine) (Rs. /Tonne)
SUBSIDIARY	Steel Grd I	Steel Grd II	Washary Grd I	Washary GrdII	Washary GrdIII	Washary Grd IV
BCCL(for 53 units vide Annex VIII)	3260	2730	2380	1720	1290	1190
BCCL	-	-	1760	1460	1080	1000
ECL	-	-	2080	1730	1280	1190
CCL	-	-	1780	1470	1090	1020
WCL	-	-	1550	1280	1170	-

Annexure

Table-III

Semi Coking & Weakly Coking Coal (Run Of Mine) Rs./Tonne
SUBSIDIARY	Semi Coking Grd I	Semi Coking Grd II
Eastern Coalfields Limited(Raniganj)	1870	1560
South Eastern Coalfields Limited	1580	1320

Annexure

Table IV

Direct feed Coking Coal (Run of Mine)

(Rs../Tonne.)

Grade of Coal

Direct feed Coking Coal of Collieries Listed in Annexure IX (14 Units)

(Ash exceeding 20% but not exceeding 21%)

(Note:Bonus/penalty @Rs.110/te. per percent decrease/increase in Ash)

3230.00

Annexure

Table V (Revised)

(w.e.f 00.00 hrs of 9th march2008 )

Assam Coal (Run of Mine) (Rs. /Tonne.)
Unit /Grade of Coal	UHV range ((K Cal/Kg.)	Price
North Eastern Coalfields "A"	Exceeding 6200 K cal/ Kg,,But not exceeding 6299 K. Cal./Kg.	2280.00
North Eastern Coalfields "B"	Exceeding 5600 K cal/ Kg,,But not exceeding 6200 K. Cal./Kg.	1815.00

Annexure

NOTE:-

1.In Grade "A" for every additional UHV of 100K Cal /Kg. exceeding 6299 K Cal /Kg. ,Additional Rs.82.00 /M Te. shall be added to the price of " A "Grade.

2.For UHV exceeding 7099 k. Cal./ kg. ,the price of coal shall be Rs.3345 per tonne for ROM Coal and the price difference among the steam ,slack and run of mine coal shall remain same.

General Remarks:-

PRICE NOTIFICATION NO CIL : S&M: GM(F) : Pricing 1124 dated 12^th Dec.07

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 12^th December,2007 i.e. Zero Hours of 13^thDecember.,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 .

12For undertaking special sizing or beneficiation of coal, additional charges as

may be negotiated between the purchaser and the producer may be realised over and above the pithead prices .

13 A rebate of 5% for supply of wahsery grade coking coal will be given to power houses other than captive ones .

PRICE NOTIFICATION NO CIL : S&M: GM(F) : Pricing 1124 dated 12th Dec.07

PRICE NOTIFICATION NO CIL : S&M: GM(F) : Pricing 1124 dated 12^th Dec.07