NEW DELHI: The National Coal Index (NCI) has registered an increase of 3.83 points to 143.91 for the month of September 2023, the coal ministry said in a statement on Tuesday. This marks the first rise in the index since April 2023, with a notable influence from the short-term escalation in global coal prices.
The NCI, which was launched on June 4, 2020, acts as a barometer for the variations in coal prices month-over-month, in comparison to a fixed base year. The index’s primary role is in the determination of the premium and revenue share to be levied on coal transactions, basing it on a market-driven mechanism.
“The Index is meant to encompass all transactions of raw coal in the Indian market. This includes coking and non-coking of various grades transacted in the regulated (power and fertilizer) and non-regulated sectors. The transactions include those at notified price, coal auctions and coal imports,” the ministry added.
According to the ministry’s statement, the uptick in the NCI is indicative of a higher demand for coal, propelled by the forthcoming festive season and the onset of winter. This presents an opportunity for coal producers to potentially escalate domestic coal production to meet the increasing energy demands of the country.