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Coal India Gains After Increasing Prices of Some Fuel Grades

  • Net 6.3% increase will add 32.3 billion rupees to FY17 revenue
  • Coal price change to help pay for salary revision: chairman

Coal India Ltd., the world’s biggest producer, jumped the most in more than three months after raising prices of lower grades of the fuel and cutting rates on higher grades for a net increase of 6.3 percent, the first price revision across all of its production in three years.

“The revision is aimed at both motives of raising demand and covering costs,” said Chairman Sutirtha Bhattacharya in a phone interview Sunday night. “For higher grades, we have reduced the prices to prop up demand from import-parity sectors, while the lower grade increase is meant to pay for increase in expenses, such as wages.”