New Delhi: The CIL board is likely to meet on Monday to examine the new coal pricing mechanism, a top company official said.

"The talks are underway. We have been asked to work out on prices of coal (under the new pricing mechanism). We will take it to board on January 30 as it is the deciding authority," Coal India (CIL) Chairman and Managing Director N C Jha said.

Coal Minister Sriprakash Jaiswal had said earlier that "CIL has made some mistake in the system adopted for pricing of coal (under the new mechanism)".

Coal India shifted to a new pricing mechanism from January 1. Under this system, prices have been linked to the actual calorific value or quality of coal.

The new pricing mechanism resulted in an increase in rates of the fossil fuel though the Coal Ministry had indicated the new formula would be revenue-neutral.

Till December 31, 2011, CIL used to follow a pricing mechanism based on the Useful Heat Value (UHV) of coal, which deducted ash and moisture content from the standard formula.

Consumers across sectors including power, cement, aluminium and steel have opposed the new method as they feel that prices have risen substantially and this will necessitate in a price increase in their own respective commodities.