New Delhi: State-run coal producers Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) are absorbing a sharp rise in input costs without raising coal prices, as the government leans on coal to stabilise energy supplies amid disruptions linked to the Strait of Hormuz. “The explosive prices have gone up and the diesel price has also gone up. But national coal companies have not increased the prices of coal. We have ensured affordability without passing on these costs to consumers and recovering none from them,” said Sanjeev Kumar Kassi, Joint Secretary, Ministry of Coal, at an inter-ministerial press briefing on West Asia on Wednesday.
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He said ammonium nitrate, a key input for explosives, has risen from about Rs 50,000 per tonne in March to Rs 72,000 per tonne — an increase of nearly 43 percent — pushing up explosive prices by 26 percent to around Rs 49,000 from Rs 40,000. Despite these pressures, Coal India has not raised prices and has instead reduced reserve prices in e-auctions “so that affordability is still maintained,” he said. In the wake of the energy supply disruptions caused by the West Asia conflict, the government has sought to substitute natural gas and LPG with coal and kerosene, wherever possible.
In line with the government’s direction, Coal India and SCCL have increased e-auction of coal to ensure supplies for small and medium industries and other consumers who may like to buy coal. Kassi said that before March, CIL and SCCL conducted 15-20 e-auctions every month which has now gone up to 30 a month. In March, 32.53 million tonnes (MT) of coal was offered under e-auction regime, out of which 13.32 MT was booked, indicating that coal availability was greater than the demand, said the Joint Secretary. “In the month of April as well, Coal India has planned 30 auctions again. Almost one auction per day. We are seeing that almost 40 percent coal gets booked every time under the e-auction regime,” Kassi noted.
The Joint Secretary said that due to proactive approach and timely action by the coal sector, adequate coal stocks have been built at power plants even well before the signs of the West Asia conflict emerged. “We have ensured energy security in the country, insulating the country from the potential disruptions,” he said.
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India ended FY2025-26 with 1 Billion Tonnes (BT) of coal production for the second time in a row. Commenting on the coal stock situation in the country, the Joint Secretary said that India has coal stock of around 220 MT in total. “Coal stock, as of now, at the power plant is around 55 MT as of yesterday which is adequate for 24 days of uninterrupted power generation based on the average consumption of the last seven days. In addition, we have coal stock of 170 MT at Coal India mines and captive mines. We are producing coal at a pace matching with the consumption levels. There is no deficit on a daily basis. There is absolutely no shortage of coal,” said the official.
