National Coal Index

About National Coal Index

• The NCI is a price index which reflects the change in the price level of coal in a particular month relative to the fixed base year.
• This price index combines the prices of coal from all the sales channels- Notified Prices, Auction Prices and Import Prices.
• It has been rolled out on 4th June 2020 and the aim is to have an index that will truly reflect the market price.
• The base year is FY 2017-18.
• The concept and design of the Index as well as the Representative Prices have been developed by the Indian Statistical Institute, Kolkata.
• 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.
• The NCI's upward movement indicates rising demand for coal because of the upcoming festive season and winter in the country, which will encourage coal producers to take maximum benefit by further scaling-up domestic coal production to meet the growing energy demands.

Q1) What is Coal?

It is a black or brownish-black sedimentary rock that is primarily composed of carbon, along with various other elements, such as hydrogen, sulfur, oxygen, and nitrogen. It is formed from the remains of plants that lived and died millions of years ago.

Source: National Coal Index rises 3.83 points in September amid higher demand