CIL insulates users from rising input costs despite operational cost surge

Coal India Limited (CIL) is absorbing significant increases in operational costs to shield Indian coal users from escalating input prices. Despite a 44% surge in Ammonium Nitrate (AN) prices, a key component of explosives, leading to a 26% rise in explosive costs from ₹39,588 to ₹49,783 per metric ton, CIL is bearing the burden. Additionally, industrial diesel prices have jumped 54% from ₹92 to ₹142 per litre, with CIL also compensating contractors for this increase. Annually, CIL's subsidiaries consume around 9 lakh metric tons of explosives and 4.19 lakh kilolitres of diesel. To further support affordability, some CIL subsidiaries have reduced coal reserve prices in e-auctions and increased auction frequency and volume. This strategy aims to provide affordable dry fuel and prevent a cascading effect of price increases on the economy.