The Central Government on Friday said coal would be priced on internationally-accepted gross calorific value-based mechanism from next month.
However, the new system in not likely to lead to any significant change in pricing, an official statement said.
“The Ministry of Coal is migrating to gross calorific value (GCV)-based grading system for non-coking coals from the existing useful heat value (UHV)-based system with effect from January 1, 2012, which is an international practice,” it said.
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The new system will incentivise improvement in quality, resulting in better quality of coal to consumers and commensurate revenue realisation for coal firms, it added. The new system is being introduced based on the recommendations of the Integrated Energy Policy Committee and the Expert Committee on Road Map for coal sector reforms.