Coal India stock soars at 3% higher rate after its hike in coal prices

State-run miner Coal India has revised its coal prices with immediate effects, for both power and non-power consumers. The decision has come to light after the board has approved its proposal to hike the prices. The average prices hike is expected be around 10%.

The hike in prices will see the increment in the annual revenue of the world’s largest coal company miner. It is expected to increase the revenue increment of Rs. 1,956 crore during the remaining fiscal year of 2017-2018. The total revenue will stand at Rs. 6,421 crores, company said in a regulatory filing.

After its announcement, the shares of the company soared by 3.67 percent to Rs. 298.40 on Bombay Stock Exchange. The hike price will be applicable to all subsidiaries of Coal India, including NEC regulated and non-regulated sectors.

The hike in price is due to the increase in the costs, which has hampered the profitability of the company during last few quarters. The recent revision of the wage adds to the employee’s expenses up to Rs. 5,600 crore annually.

In early December, Coal India levied coal evacuation charges of Rs. 50 per tons. Earnings of public sector miners against this will be Rs. 2,500 crore every year. In the remaining fiscal year 2017-2018 the evacuation fee levied is estimated to generate additional revenue of Rs. 800 crore.

Meanwhile, the sales bills will be also raised on GCV (Kcal/Kg) basis with effect from April 1, 2018, and until then the present mode of raising bills should continue, said Coal India.

The last revised price was in May 2016 by 6.3 percent, which generated on average revenue of Rs. 3,234 crore.

DRI seizes gold worth Rs 2 crore, smuggled in India

The Directorate of Revenue Intelligence (DRI) has seized more than seven kilograms of gold bar smuggled into India from Bangladesh, reported Financial Express and Business standards. The value of these gold bar is estimated to be over Rs two crores.

Nearly 50 gold bars having foreign markings, weighing 7412.43 grams, and valued at over Rs 2.04 crore were found and seized from the three accused. The agency was working on a tip-off. They got hold of a black Alto car from the eastern part of Kolkata and arrested the three accused Indrajit Biswas, Selim Molla and Rabiul Islam, who hail from India-Bangladesh border areas.

The accused admitted of smuggling the gold bars from Bangladesh into

India. The accused were supposed to further deliver them at Kolkata. All the three accused had been produced before the court and have been remanded judicial custody till September 21.

This year, the agency has seized over 150 kg of gold from West Bengal and north-eastern states. The value of this is valued close to Rs 44 crore in the market, which was smuggled from Bangladesh, Myanmar, and Bhutan.

News Source: Financial Express, Business Standard

Image Source: Indian Express