India’s coal buyers pay over 300% premiums to ensure fuel supplies

23 Mar 2022 CW Team

Coal buyers paid Coal India Ltd (CIL) a premium of over 340% more than baseline prices in two sales this month to ensure fuel supplies.

In the auctions held by the state-run miner of the country, Indian coal prices have increased highly, with domestic buyers hurrying to ensure supplies due to disruptions worldwide increasing the prices of imported fuels.

Coal India, the top producer of fuel globally, sells around 15% to 20% of its production via an online auction system.

The buyers make offers above a minimum fixed price and rates paid are generally far more than the long-term contracts that account for the majority of sales.

The coal produced locally is way cheaper compared to the fuel imported from Indonesia or Australia, including the high premiums.

On March 11 auctions of Coal India, 6,000 kilocalories per kilogram was sold for approximately Rs 11,700, which is less than half the cost of a similar kind of coal at Newcastle on the same day.

Coal India is also seeking to make the first huge price rise since 2018 to long-term contracts, asserting that an increase is crucial to handle surging costs.

India is dependent on coal to produce nearly 70% of its electricity.

Image Source

Also read: NCL ensures enough fuel supply to meet surging energy demand

Infrastructure Transport

27 Jun 2026

Noida Airport Fuels NCR Realty Growth

The start of commercial operations at Noida International Airport has recently emerged as a major trigger for real estate growth across Noida, Greater Noida and the Yamuna Expressway region. The airport is expected to improve regional connectivity and support the next phase of development in eastern NCR.The airport, inaugurated on 28 March, has begun passenger services, while cargo operations are also expected to strengthen its role as an economic and logistics hub. Its operationalisation is expected to reduce dependence on Delhi’s Indira Gandhi International Airport for residents and busine..

thyssenkrupp and GlobalLogic Form AI Alliance

thyssenkrupp AG and GlobalLogic, a Hitachi Group company, have recently formed a strategic alliance to deploy autonomous robotics and Physical AI across heavy industry operations. The partnership aims to improve safety, reduce engineering bottlenecks and accelerate industrial transformation at scale.The alliance brings together thyssenkrupp’s industrial expertise with Hitachi’s innovation capabilities. It includes GlobalLogic, Method and Hitachi America R&D, creating a “Lab-to-Scale” pipeline that connects research, digital strategy, design and enterprise software engineering for i..

Platinum Corp Launches Luxury Suites in Santacruz

Platinum Corp has recently launched Platinum Stellar: Bespoke Presidential Suites, a premium residential project in Santacruz West, Mumbai. The development is positioned as a boutique luxury offering for homebuyers seeking expansive layouts, privacy and personalised living experiences.Located on Main Avenue, the project has been designed as a low-density, high-end residential address with spacious homes starting from 2,500 sq ft and extending to full-floor residences. The project targets HNIs, business owners and legacy residents from the Bandra-Khar-Santacruz belt.Platinum Stellar has been de..