The recent coal price hike by Coal India Limited (CIL) will not lower demand in India, as asserted by Anil Swarup, the Coal Secretary of India, in a recent interview with a leading television channel.
The Coal secretary had highlighted the cost economics and improving supply scenario in the country that will render domestic purchases a commercially viable option for consumers in the country.
According to him, domestic coal is actually still cheaper than landed costs of imports of similar grades, despite CIL’s recent price hike. He also downplayed any possible impact to coal demand from alternatives, like Petcoke; as the coal grades that competes with such alternatives were priced competitively.
Swarup also highlighted the adequacy of domestic supply in the country and the consumer-friendly domestic coal supply mechanism followed by CIL. He mentioned that 8 MnT of coal will be E-auctioned every month during the current fiscal; and 27 MnT of coal linkages will be auctioned to the non-regulated sectors this fiscal. Besides, CIL is having an inventory of 47-48 MnT at pitheads, he mentioned.
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