Prices of cement are likely to witness a surge due to costlier coal from state major Coal India Ltd. It is expected that prices are likely to be increased by cement companies by Rs 8-10 per bag.The cement industry is facing added cost pressure from the new pricing mechanism of Coal India Ltd. From its earlier grading on useful heat value, CIL had now shifted to a pricing mechanism based on gross calorific value (GCV). This has resulted in a rise in prices. The cement sector accounts for a consumption of around seven to eight million tones annually. The sector normally uses higher grades of coal like C and D. With the imposition of the GCV regime, the prices rise is expected to be around 10-15 percent higher.Though any rise in prices has not been communicated by cement manufacturers, the same are expected to rise from January 15. Though the impact of change in the pricing method will differ for companies, it will be a substantial increase in cost prices.