Coal stocks plunge to 5-year low as power demand rises; how this can affect government’s fiscal math


Coal stocks plunge to 5-year low as power demand rises; how this can affect government’s fiscal math

Amid a sudden rise in coal demand from the power sector, the coal stocks fell to a 5-month low of 21 million tonne (mt) in the month of October, triggering fear of power plant outages, The Indian Express reported.

Any inability on the part of the domestic coal sector to meet the rising demand could very well result in increasing burden on the country’s merchandise-trade and overall current account deficits, the report added.

The imported coal of comparable thermal grades is nearly a third costlier when compared to the local availability. However, in a few cases, the landed cost of the imported varieties also reaches 1.5 times that of local coal. Read More

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