New Delhi:  State-owned Coal India (CIL) today said its board has approved switching over to internationally- accepted Gross Caloric Value-based pricing mechanism.

"The board of directors of the company at its meeting held on December 30, 2011, has approved switching over of non-coking coal pricing from Useful Heat Value based grading system to Gross Caloric Value (GCV) based classification with effect from January 1," CIL said in a filing to the BSE.

"It is difficult to assess the exact impact as it will be based on the caloric value," the company added.

Last week, the Coal Ministry had said that the pricing of coal on GCV-based mechanism was not likely to lead to any significant change in pricing.

The new system will incentivise improvement in quality, resulting in better quality of coal to consumers and commensurate revenue realisation for coal firms, the ministry had said.

The new system is based on the recommendations of the Integrated Energy Policy Committee and the Expert Committee on Road Map for coal sector reforms.

(Agencies)