What is National Coal Index (NCI)?

About National Coal Index (NCI):

• 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.
• NCI 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 concept and design of the index as well as the representative prices have been developed by the Indian Statistical Institute, Kolkata.
• It is released every month by the Ministry of Coal.
• The base year is FY 2017-18.
• 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.
  • Washed coal and coal products are not included.
• The NCI's upward movement indicates rising demand for coal, which will encourage coal producers to take maximum benefit by further scaling-up domestic coal production to meet the growing energy demands.
• The downward trajectory of the NCI signifies a more equitable market, harmonizing supply and demand dynamics.