Odisha Coal and Power Ltd (OCPL), a state-run company in India, plans to sell extra coal at a discount because there’s less demand for the fuel. They will auction 3 million tons of surplus coal on October 4 through an online auction, offering it at 15% less than the base price on the national coal index. This discount is for coal being sold to power plants.
India’s overall coal production increased by 7.12% between April 1 and August 25, reaching 370 million metric tons. According to Riya Vyas, a senior analyst at iEnergy Natural Resources Ltd, the high supply and low demand for coal show that power plants aren’t needing as much right now, especially as domestic production has picked up after the rainy season.
In the last fiscal year ending on March 31, India produced a record 997.828 million tons of coal, a 12% increase compared to the previous year. In 2023, over 75% of India’s electricity was generated using coal. The country imported 176 million tons of thermal coal last year, mainly for power plants. However, with domestic production increasing and stockpiles at record levels, India is expected to reduce coal imports this year for the first time since the COVID-19 pandemic.
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