A shift to gross calorific value method by Coal India for pricing its coal is seen pushing up cement prices.
Cement producer Birla Corp’s production costs have risen by Rs8-10 per 50-kg bag, its chief financial officer P K Chand said.
This may prompt Birla Corp and other cement makers to hike prices, Chand said, as the increase can be passed on to consumers during January-June when the demand is high.
“Input prices have risen so much that cement producers are already contemplating taking a increase of about Rs5-10 a bag,” Chand said at a press conference of Coal Consumers’ Association of India to express their displeasure over the new pricing.
Birla Corp’s cost of generating power would go up by about 65 paise a unit under the new system. “For us, power generation cost is going up by about 25% at our Satna plant, similar to what a major power producer like NTPC would suffer.”
Chand said the cost of coal in the Chanderia plant at Rajasthan is going up by 61% from Rs1,052.12 a tonne under the new pricing regime.
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