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.
