India’s national coal index decreases 3.48% in June

This means a sufficient availability of coal in the market.

The Ministry of Coal in India has reported a 3.48 % decline in the national coal index (NCI) to reach 142.13 points in June 2024 from 147.25 points a year ago. This decrease indicates sufficient availability of coal in the market to meet the growing demands.

In a statement, the ministry explained that the NCI is a price index that combines coal prices from sales channels, such as notified prices, auction prices, and import prices. It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertiliser) and non-regulated sectors. 

This was established in fiscal year 2017-2018, and serves as an indicator of market dynamics, providing insights of price fluctuations.

According to the ministry, the decline in NCI signifies a more equitable market, harmonising supply and demand dynamics.

The ministry also reported a 14.58 % increase in the country’s coal production during June 2024, ensuring a stable supply to various sectors reliant on coal, and contributing to the overall energy security of India.

“With sufficient coal availability, the nation can not only address burgeoning demands but also underpin its long-term energy requisites, thereby fortifying a more resilient and sustainable coal industry and fostering a prosperous future for the nation,” it said.

The coal ministry earlier said initiatives have been implemented to boost local production of coal and to eliminate non-essential importation as it sees demand to increase to about 1.5 billion tonnes by 2029 to 2030.