The recent energy demand uptick in India has boosted off-take from the power generators but has also resulted in higher dependence on costlier coal imports as the coal supply from domestic sources was insufficient, research and ratings agency ICRA said in a report.
“With international coal price level increasing by about 20 per cent in 9 months of 2018 on a year-on-year basis and the Rupee also seeing a sizeable depreciation against the US dollar, this has resulted in an upward pressure on cost of power purchase for distribution utilities,” said Girishkumar Kadam, Sector Head and Vice President at ICRA.
He added the augmentation of domestic coal supplies through higher mining activity and improved rail infrastructure remains crucial for the sector from a cost control perspective. Read More
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