Published on: November 18, 2023
NATIONAL COAL INDEX (NCI)
NATIONAL COAL INDEX (NCI)
NEWS – National Coal Index records an increase
ALL YOU HAVE TO KNOW
- What: Price index which reflects the change in price of coal on a particular month relative to the fixed base year
- Rolled out on 4th June 2020 by the Ministry of Coal
- Determine the Premium (on a per tonne basis) or Revenue Share (on a percentage basis) based on a market-based mechanism
- 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 NCI’s upward movement indicates rising demand of coal because of upcoming festive season and winter in the country, which will encourage coal producer to take maximum benefit by further scaling-up domestic coal production to meet the growing energy demands