India’s Odisha Coal and Power Ltd (OCPL) is set to auction 3 million tons of surplus coal at a 15% discount on Oct 4, indicating lower demand for the fuel in the country. Domestic coal production in India has increased by 7.12% from last year, leading to an oversupply situation.
Riya Vyas, a senior analyst, pointed out that the surplus coal sale reflects a high supply and reduced demand scenario. With the annual monsoon season coming to an end, coal-fired power plants are facing limited electricity demand. India’s coal production reached a record high of 997.828 million tons last fiscal year, with over 75% of power generation coming from coal.
Despite importing 176 million tons of thermal coal in 2023, India’s thermal coal imports are expected to decline this year due to rising domestic output and high inventories. This shift in the market dynamics is a significant development for the coal industry in India.
The auction represents a unique opportunity for buyers to acquire coal at a discounted rate, reflecting the evolving landscape of the coal market in India.
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