It is reported that thermal coal prices have fallen in international markets by over 25% in the past few months, helping power generators in India cut production costs.

While the price of Indonesian coal has fallen to USD 75 per tonne freight on board from around USD 100 in January 2012, Australian coal with gross calorific value of 6,000 kilo calories per kilogram has declined to USD 88 per tonne from USD 108.

A senior official at NTPC said that "Cost of producing power has reduced by 7 to 10 paise per unit as a result of the decline in global prices."

The official said NTPC is passing on the reduction in fuel prices to its consumers the state utilities-that are now buying power at cheaper rates. He added that "This will be reflected in power tariff of users when they file for tariff revision next near."

The fall in coal prices has added to the joy of power producers, who are witnessing a sharp drop in power demand because of the sudden pick up in monsoon.

Source - India Times

(www.coalguru.com)

Prices/Thermal Coal/India