New Delhi: In a significant development, the National Coal Index (NCI) witnessed a 3.83-point surge in September 2023, marking its first increase since April 2023. This upswing was driven by a temporary uptick in global coal prices.
Launched by the Ministry of Coal on June 4, 2020, the National Coal Index (NCI) functions as a price index that tracks the fluctuation in coal prices for a specific month relative to the fixed base year.
The NCI plays a pivotal role in determining premiums on a per-tonne basis or revenue share on a percentage basis, employing a market-based mechanism. It comprehensively covers all transactions involving raw coal in the Indian market, encompassing both coking and non-coking coal of various grades traded in both regulated (power and fertilizer) and non-regulated sectors. This includes transactions conducted at notified prices, coal auctions, and coal imports.
The upward trajectory of the NCI signifies an increasing demand for coal, particularly in anticipation of the upcoming festive season and winter in the country. This surge is expected to incentivize coal producers to ramp up domestic coal production, aligning with the escalating energy requirements of the nation.