What will be the implication of use of Useful heat Value in coal pricing ........

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What will be the implication of use of Useful heat Value in coal pricing?

Increase in revenue to government

Decrease in revenue to government

cannot be determined.

Increase in revenue in some cases and decrease in others and a net increase.

There are two ways of measuring coal prices adopted by GoI

Useful Calorific value

Gross Calorific Value

On UHV basis, A grade of coal, considered to be the best quality was available at Rs 4,100 per tonne at the pit head.

On GCV basis, it will be available at Rs 5,194.

So clearly there will be decrease in the revenue of government.

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