As per an official announcement, in September 2023, the National Coal Index (NCI) has climbed by 3.83 points to 143.91 points, reflecting the shift in coal prices. As per the Ministry of Coal’s statement, this increase can be attributed to a brief surge in coal prices on international markets. “For the first time since April 2023, the NCI is slightly higher by 3.83 points to 143.91 in September 2023.”
The revenue share (calculated as a percentage) or premium (calculated per tonne) is determined using the NCI through a market-driven process, according to the ministry. The Ministry of Coal launched the National Coal Index (NCI) on June 4, 2020. This price index shows how much coal has changed in a given month in comparison to a predetermined base year. The index is designed to include all raw coal transactions on the Indian market.
This covers a range of grade coking and non-coking transactions in the non-regulated and regulated industries (such as power and fertilizer). Coal auctions, coal imports, and transactions at notified prices are among the transactions. The upward movement of the NCI shows that demand for coal is expected to rise due to the impending winter and holiday seasons. This will incentivize coal producers to maximize their profits by increasing domestic coal output to keep up with the increasing demand for electricity.
