Price rise in coal from Indonesia and weak Rupee hits power firms in India

The government on Friday confirmed that the increase in prices of coal from Indonesia has hit power producing companies in India.

“Some power generation companies in India are facing the problem of an increase in the price of imported coal due to new regulations in export of the commodity in Indonesia,” Minister of State for Power K C Venugopal said in the Lok Sabha.

New regulation issued recently by the government of Indonesia prohibits the sale of coal, including sales to affiliate companies, below a benchmark price based on international rates.

Also weakening Rupee against dollar has made imports expensive by 3-4% in a months time.