New Delhi, Aug 16 (IANS): Coal prices came down in the country during June, indicating an increase in the availability of the fuel to meet the growing demand in the economy, according to a Coal Ministry statement issued on Friday.

"The National Coal Index, which reflects prices, has shown a significant decline of 3.48 per cent in June 2024 at 142.13 points compared to the corresponding figure of 147.25 points for June 2023. This notable decrease indicates sufficient availability of coal in the market to meet the growing demand," the statement said.

The National Coal Index (NCI) is a price index that combines coal prices from all sales channels including Notified Prices, Auction Prices, and Import Prices.

It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertiliser) and non-regulated sectors.

Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premium confirms the sufficient coal availability in the market, the statement added.

Established with the base year as FY 2017-18, NCI serves as a reliable indicator of market dynamics providing valuable insights of price fluctuations.

The downward trajectory of the NCI signifies a more equitable market, harmonising supply and demand dynamics.

Coal production shot up 14.58 per cent in the country during June this year compared to the same month last year. This has enabled a stable supply to various sectors reliant on coal, significantly contributing to the overall energy security of the nation, the Coal Ministry statement added.

India's coal production increased by a robust 11.7 per cent to scale a record level of 997.83 million tonnes (MT) during the financial year ended March 31, 2024, as the government focuses on increasing domestic production of the fuel to eliminate non-essential imports of coal in the country, Minister of Coal and Mines G. Kishan Reddy told the Lok Sabha earlier this month.

Coal production has risen steadily in the last four years.

The double-digit increase has been carried over to the first quarter (April-June) of the current financial year with a growth of 10.75 per cent to 247.396 MT, according to data tabled in Parliament.

The steps taken by the government to step up coal production in the country include a single window clearance portal for the coal sector to speed up mining operations.

As part of the new reforms, auction of commercial mining on a revenue sharing basis was launched in 2020, which has led to more companies investing in coal mining, resulting in an increase in coal production.

Coal companies, including the country's largest producer Coal India Ltd, have also taken various steps to increase the domestic coal production such as the adoption of mass production technologies.

It has also been using state-of-the- art technology in its high-capacity excavators, dumpers and surface miners.

Besides, Coal India is planning large capacity UG mines wherever feasible, the minister said.