India-based coal miner Coal India has announced that it has switched to a quality based pricing system, as a result of which the company's share price has risen by five percent on Bombay Stock Exchange (BSE), according to local media reports.
Coal India stated that it aims to boost revenues with the new pricing system, as well as avoid the impact of wage increases. The company said that employee wages make up 57 percent of its total spending and that a 10 percent rise could pull down its earnings.
Additionally, Coal India will continue to offer discounts ranging from 25 percent to 77 percent to power industry customers, despite the new pricing system. Coal India is hopeful that price increases will not slow down demand.