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17) this month as the new coal pricing mechanism adopted by Coal India has increased production costs, Crisil Research said.
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"Cement players will try to pass on the cost increase resulting from the new pricing policy adopted by Coal India w.e.f. January 1, 2012. Hence, we believe that pan-India cement price is likely to rise by 2-3 per cent in January, 2012," said Crisil Research Head Ajay D'Souza.
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Deviating from its earlier practice, CIL started pricing coal on the basis of gross calorific value -- the energy produced by burning it -- with effect from January this year.
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Earlier, the price of coal was fixed on the basis of the moisture and ash content present in coal.
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The average price of a 50-kg bag of cement fell by 1 per cent in December vis-a-vis November to Rs 285, despite strong 13.
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4 per cent growth in demand vis-a-vis the corresponding month last year to 20 million tonnes.
"The improved pace of construction activity would also support demand growth during the month, aiding price rise," D'Souza added.
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During the April-December period of the current fiscal, the country's cement consumption grew b