Facts for Prelims (FFP)
Source: PIB
Context: The National Coal Index (NCI) rose by 3.83 points to 143.91 in September 2023, marking the first increase since April 2023.
- The increase suggests growing coal demand ahead of the festive season and winter, prompting coal producers to scale up domestic production to meet rising energy needs.
What is NCI?
The NCI (introduced in June 2020) is a price index reflecting coal price changes relative to the fixed base year (Financial Year 2017-18). It compiles prices from all coal sales channels, including imports, and determines the revenue share per tonne using a defined formula.
The NCI consists of five sub-indices—three for Non-Coking Coal and two for Coking Coal—allowing separate indices for each.
The Ministry of Coal does the commercial auction of coal mines based on revenue share, utilizing the National Coal Index (NCI).
