The National Coal Index (NCI) witnessed a marginal increase of 3.83 points, reaching 143.91 in September 2023, signifying the first rise since April 2023. This elevation in the index is primarily influenced by a temporary hike in global coal prices, reflecting a noteworthy shift in the coal market landscape.
Launched by the Ministry of Coal on June 4, 2020, the NCI serves as a crucial price index that portrays the fluctuations in coal prices during a specific month concerning the fixed base year. It is an instrumental tool utilized to ascertain Premium (per tonne) or Revenue Share (percentage-wise) through a market-based mechanism.
The scope of the NCI is comprehensive, encapsulating all transactions involving raw coal across the Indian market. This encompasses various grades of coking and non-coking coal transacted in both regulated (power and fertilizer) and non-regulated sectors, including transactions at notified prices, coal auctions, and imports.
The recent upward movement in the NCI indicates a surge in the demand for coal, particularly attributable to the approaching festive season and impending winter. This burgeoning demand is expected to prompt coal producers to intensify domestic coal production, aligning with the escalating energy requirements of the nation.
The NCI’s rise serves as a vital indicator for coal producers, signaling a potential opportunity to maximize production and cater to the escalating energy demands of the country, a trend anticipated to gain further momentum during the forthcoming festive season and the winter months.
