Coal India’s decision to hike the charges for transporting coal from the minefields to the loading points could result in a hike of about 2 paise per unit in the price of power sold to households.

According to a news report in The Economic Times, Coal India has raised the charges to keep up with the hike in the diesel price and the wages of employees and contract employees involved in transporting the coal.

As per the revised rates implemented from November 14, Coal India is charging Rs 57 per tonne instead of Rs 44 per tonne for 3-10 km. This spells an increase of 29.5% while the company has increased the surface transport charges for 10-20 km by nearly 51%, to Rs 116 per tonne from Rs 77 per tonne.

Almost all power producers will now have to pay more to Coal India because the distance between mines and loading points is usually 3-20 km. Loading points include coal stockyards and railway siding from where Coal India's clients lift the fuel.

The revised rates imply that power producers will have to pay an additional Rs 55,000 for buying a rake of coal from Coal India in case the coal is transported between 3 km and 10 km. For loading points located between 10 km and 20 km, the additional outgo will be Rs 1.7 lakh per rake.