India’s coal buyers pay over 300% premiums to ensure fuel supplies
ECONOMY & POLICY

India’s coal buyers pay over 300% premiums to ensure fuel supplies

Coal buyers paid Coal India Ltd (CIL) a premium of over 340% more than baseline prices in two sales this month to ensure fuel supplies.

In the auctions held by the state-run miner of the country, Indian coal prices have increased highly, with domestic buyers hurrying to ensure supplies due to disruptions worldwide increasing the prices of imported fuels.

Coal India, the top producer of fuel globally, sells around 15% to 20% of its production via an online auction system.

The buyers make offers above a minimum fixed price and rates paid are generally far more than the long-term contracts that account for the majority of sales.

The coal produced locally is way cheaper compared to the fuel imported from Indonesia or Australia, including the high premiums.

On March 11 auctions of Coal India, 6,000 kilocalories per kilogram was sold for approximately Rs 11,700, which is less than half the cost of a similar kind of coal at Newcastle on the same day.

Coal India is also seeking to make the first huge price rise since 2018 to long-term contracts, asserting that an increase is crucial to handle surging costs.

India is dependent on coal to produce nearly 70% of its electricity.

Image Source

Also read: NCL ensures enough fuel supply to meet surging energy demand

Coal buyers paid Coal India Ltd (CIL) a premium of over 340% more than baseline prices in two sales this month to ensure fuel supplies. In the auctions held by the state-run miner of the country, Indian coal prices have increased highly, with domestic buyers hurrying to ensure supplies due to disruptions worldwide increasing the prices of imported fuels. Coal India, the top producer of fuel globally, sells around 15% to 20% of its production via an online auction system. The buyers make offers above a minimum fixed price and rates paid are generally far more than the long-term contracts that account for the majority of sales. The coal produced locally is way cheaper compared to the fuel imported from Indonesia or Australia, including the high premiums. On March 11 auctions of Coal India, 6,000 kilocalories per kilogram was sold for approximately Rs 11,700, which is less than half the cost of a similar kind of coal at Newcastle on the same day. Coal India is also seeking to make the first huge price rise since 2018 to long-term contracts, asserting that an increase is crucial to handle surging costs. India is dependent on coal to produce nearly 70% of its electricity. Image Source Also read: NCL ensures enough fuel supply to meet surging energy demand

Next Story
Infrastructure Urban

We operate 100 smart buses serving 30,000 passengers daily

Aurangabad, known as the ‘City of Gates’ owing to its historical monuments and Mughal heritage, is equally renowned for its industrial development, with a nominal gross district domestic product (GDDP) of Rs.988.04 billion. As growth has progressed, there has been a focus on enhancing the standard of living, prompting key initiatives, including the award-winning Majhi Smart  Bus Initiative. G Sreekanth (IAS), CEO, Aurangabad Smart City Development Corporation Ltd (ASCDCL), discusses the city’s ongoing and upcoming developments in conversation  with NEHA YADAV.Recent news h..

Next Story
Infrastructure Energy

Sterling and Wilson Secures Rs 12 Bn Solar EPC Contract in Gujarat

Sterling and Wilson Renewable Energy has been awarded a Rs 1,200 crore contract for a 500-megawatt (MW) solar photovoltaic (PV) project in Gujarat, strengthening its foothold in India’s renewable energy sector. The engineering, procurement, and construction (EPC) contract encompasses the design, engineering, and installation of balance-of-system (BoS) components with single-point responsibility. It also includes operations and maintenance (O&M) services for three years. “We are delighted to secure this significant order, which will aid India, especially Gujarat, in its transition to clean ..

Next Story
Infrastructure Energy

NTPC Green Energy Signs MoU with Bihar Government

NTPC Green Energy (NGEL), a subsidiary of NTPC, has entered into a Memorandum of Understanding (MoU) with the Department of Industries, Government of Bihar, during the Bihar Business Connect 2024 Global Investors’ Summit held on 20 December 2024 in Patna. The MoU outlines plans for substantial investments in Bihar to establish various renewable energy projects, including: Ground-mounted and floating solar installations Battery energy storage systems Green hydrogen mobility initiatives The Bihar Government will assist by facilitating necessary approvals, permissions, registrations, and cleara..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000