National Coal Index rises 3.83 points in September amid higher demand

New Delhi: The National Coal Index (NCI) rose 3.83 points to 143.91 in September amid increased demand for coal.

The union coal ministry said on Tuesday that this is the first increase in the index since April 2023. “The temporary rise in coal prices in global markets has affected this incline,” it said.

NCI is a price index that combines coal prices from all sales channels, announced prices, auction prices and import prices. It is used to determine the premium, on a per tonne basis or the revenue share on a percentage basis based on a market based mechanism.

According to the Ministry, the upward movement in the index indicates that there is an increasing demand for coal due to the Christmas and winter season in the country, which will encourage coal producer to maximize the benefit by further increasing domestic coal production to meet the growing energy. demands.

The National Coal Index (NCI) was implemented on 4 June 2020 and is a price index that shows the change in the price of coal in a given month relative to the fixed base year.

In recent months, India has seen an increase in demand for coal, mainly from the power sector with increasing power demand. Import of coal from power stations also continued as the power ministry has mandated all gencos to blend imported coal.

So far in FY24 (April-October) India has produced 507.01 million metric tonnes of coal with a growth of 13.02% year on year. The government aims to take this annual production to $1 billion tonnes.

The captive and commercial mines have produced 75.94 million tonnes so far and are expected to reach 162 million tonnes by the end of the fiscal.

In FY23, India had produced 893.19 million tonnes of coal with a growth of 14.77% over the previous year.

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Updated: 07 November 2023, 07:54 PM IST

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