Coal India Absorbs Rising Input Costs to Shield Users
Filing Summary
Coal India Limited (CIL) is absorbing increased input costs to protect Indian coal users from rising expenses. The company is addressing the impact of higher prices for explosives and industrial diesel. The cost of Ammonium Nitrate, a key component in explosives, rose by 44 percent, affecting CIL’s operations. Diesel prices also increased by 54 percent. Despite these challenges, CIL is maintaining coal supply at affordable prices through increased auction frequency and reduced reserve prices. The company’s actions aim to stabilize coal costs amidst fluctuating energy prices.
On 10 April 2026, Coal India Limited (CIL) announced its decision to absorb rising input costs to shield Indian coal users from increased expenses. This decision comes amidst escalating prices of explosives and industrial diesel, which are critical to CIL’s operations.
The cost of Ammonium Nitrate (AN), a significant component in manufacturing explosives used in CIL’s opencast mines, increased by 44 percent. The price rose from Rs.50,500 per metric ton before the West Asian crisis to Rs.72,750 per metric ton as of 1 April 2026. This increase directly impacted the cost of explosives, which rose by 26 percent from Rs.39,588 per metric ton in February 2026 to Rs.49,783 per metric ton by the end of March.
CIL’s subsidiaries consume approximately 9 lakh metric tons of explosives annually. Additionally, the price of industrial diesel, another crucial component, increased by 54 percent. The price rose from Rs.92 per litre in mid-March 2026 to Rs.142 per litre as of 1 April 2026. During the fiscal year 2025-26, CIL’s diesel consumption was around 4.19 lakh kilo litres.
Despite these rising costs, CIL is taking measures to maintain coal supply at affordable prices. The company has reduced the reserve price of coal in its Single Window Mode Agnostic e-auction. It has also increased the frequency of auctions and the quantity of coal available for auction. These actions aim to provide coal at a stable price to Indian consumers, mitigating the impact of fluctuating energy prices.
Coal India Limited is a state-owned enterprise and the largest coal producer in India. The company focuses on mining and producing coal to meet the country’s energy demands. CIL is committed to ensuring a steady supply of coal while managing operational challenges and cost fluctuations.