For the month of December, the National Coal Index has shown a significant decline of 4.75% at 155.44 points compared to December 2022, where it was at 163.19 points.

This notable decrease indicates sufficient availability of coal in the market to meet the growing demands, the Ministry of Coal said.

The National Coal Index (NCI) is a price index that combines coal prices from all sales channels, viz. Notified Prices, Auction Prices, and Import Prices. It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertiliser) and non-regulated sectors.

The peak of NCI was observed in June 2022 when the index reached 238.83 points but subsequent months have experienced a decline, indicative of abundant availability of coal in the Indian market.

Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premium confirms the sufficient coal availability in the market. The impressive growth of 10.74% in the country’s coal production during December ’23 as compared to the corresponding period of last year ensures a stable supply for various sectors reliant on coal, significantly contributing to the overall energy security of the nation.

The downward trajectory of the NCI signifies a more equitable market, harmonising supply and demand dynamics. With sufficient coal availability, the nation can not only address burgeoning demands but also underpin its long-term energy requisites, thereby fortifying a more resilient and sustainable coal industry and fostering a prosperous future for the nation.

Notably, the government has recently released the Index of Industrial Production (IIP) growth for December 2023. The IIP was 3.8% higher than 2.4% recorded in November. November witnessed the lowest IIP growth since March 2023, when it was 1.7%.

As per Use-based classification, the indices stand at 151.7 for Primary Goods, 103.3 for Capital Goods, 159.3 for Intermediate Goods and 177.9 for Infrastructure/ Construction Goods for the month of December 2023.

Further, the indices for Consumer durables and Consumer non-durables stand at 114.0 and 178.0, respectively.