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TFP Bureau, New Delhi; February 15, 2024: The National Coal Index (Provisional) has reported a notable decrease of 4.75% in December 2023, standing at 155.44 points compared to December 2022’s figure of 163.19 points. This decline underscores the ample availability of coal in the market, effectively meeting the escalating demands.
The National Coal Index (NCI) serves as a comprehensive price index, amalgamating coal prices across all sales channels, including Notified Prices, Auction Prices, and Import Prices. It encompasses prices of both coking and non-coking coal across various grades, catering to regulated (power and fertilizer) and non-regulated sectors.
Established with FY 2017-18 as the base year, the NCI acts as a reliable barometer of market dynamics, offering valuable insights into price fluctuations.
While the index peaked in June 2022 at 238.83 points, subsequent months have witnessed a downward trend, indicative of abundant coal availability in the Indian market.
Moreover, the premium on coal auctions serves as an industry barometer, with the sharp decline in coal auction premium affirming sufficient coal availability in the market. The commendable 10.74% growth in the country’s coal production during December 2023, compared to the corresponding period last year, ensures a stable supply across sectors reliant on coal, significantly enhancing the nation’s energy security.
The downward trajectory of the NCI reflects a more balanced market, aligning supply and demand dynamics. With ample coal availability, the nation can not only address burgeoning demands but also secure its long-term energy needs, bolstering a resilient and sustainable coal industry and fostering a prosperous future.p
