After handing a hefty cheque of interim dividend to the coal minister, Coal India Limited is all set ready to increase prices of coal by 15%. This increase will be an average and is an attempt by CIL to match international and domestic prices. A top level executive said about this price rise "We are selling coal at 50 per cent lower than imported price.

There is a huge gap between overseas and domestic price. Hence, our Board took the decision of raising the price yesterday". International coal market saw increase in coal prices as coal mines in Queensland suffered production halt because of flood. This led to increase in price of 40-50% across world. Queensland province accounts for 40% of global coking coal exports.

With this price hike, company is looking to soften burden on operating cost and will also fund salaries of its 3.85 lakh employees. CIL accounts for the 80% of the domestic coal production. The Economic Survey also attributed environmental issues for the slight reduction in the coal production in India. Last time CIL raised prices in October, 2009. CIL chairman recently revealed that company is facing problems in expansions and meeting targets on environmental issues, for mines in forest areas.