Coal news and updates

Coal index dips, may cut cost for steel, cement units

New Delhi: The National Coal Price Index fell 17.5% to 155 points in November 2023 from a year ago, indicating cheaper fuel for sectors such as cement and steel as well as power plants importing coal for blending as a result of a sharp uptick in domestic production.
The drop in the index reflects sufficient availability of coal in the market on the back of a sharp uptick in domestic production.

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Coal production grew nearly 15% to over 893 million tonne in 2022-23 and is expected to top a billion tonne by March. Rising domestic supplies mainly impact the premium in Coal India’s auctions that are a key source of domestic fuel, which costs less than imports, for non-regulated industries. Coal prices for power generation are fixed by the government. “Due to availability of domestic coal, sectors using imported coal for blending with domestic fuel will see reduction in costs. In case of power, the decision to reduce tariffs rests with the sectoral regulators,” a senior coal ministry official said.