National Coal Index

Context: Global thermal coal prices are likely to decline in 2024 on prospects of warm weather cutting heating needs and excess supply.

The International Energy Agency (IEA) has forecast China’s coal consumption to fall in 2024 and plateau through 2026, with hydropower output set to recover, while electricity generation from solar PV and wind increases significantly.
The global energy body said India, Indonesia and other emerging and developing economies are expected to rely on coal to power strong economic growth, despite commitments to accelerate the deployment of renewables and other low-emissions technologies.

The concept and design of the Index have been developed by the Indian Statistical Institute, Kolkata.
NCI is a price index combining the prices of coal from all the sales channels- Notified Prices, Auction Prices, and Import Prices.
The majority of coal is sold through the Notified Prices. For Non-Coking Coal, CIL fixes notified prices for each grade.
There is price discrimination as to the Regulated Sector and Non- Regulated Sector (NRS).
The NCI is used to determine the Premium (on a per tonne basis) or Revenue Share (on a percentage basis) based on a market-based mechanism.
The Index is 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.

Previous Year Questions

In India, what is the role of the Coal Controller’s Organization (CCO)?

CCO is the major source of Coal Statistics in Government of India.
It monitors the progress of development of Captive Coal/Lignite blocks.
It hears any objection ‘ to the Government’s notification relating to acquisition of coal-bearing areas.
It ensures that coal mining companies deliver the coal to end users in the prescribed time.

Select the correct answer using the code given below:

(a) 1, 2 and 3

(b) 3 and 4 only

(d) 1, 2 and 4

Answer- (a)

Practice questions.

With reference to National Coal Index, consider the following statements:

How many of the statements given above are correct?

(a) Only One

(b) Only two

(d) None

Answer-(b)

Explanation:

The concept and design of the Index have been developed by the Indian Statistical Institute, Kolkata.

NCI is a price index combining the prices of coal from all the sales channels- Notified Prices, Auction Prices, and Import Prices.

- The Index is 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.

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