Delhi International coal prices are likely to move up further as the worlds largest producer CIL needs to go on global shopping for the dry fuel to meet the increased demand of the power sector.
‘The demand for coal in India is likely to
go up manifold as projects go on stream,’an analyst with a global brokerage firm said.
A Committee of Secretaries, set up by Prime Minister Manmohan Singh to sort out issues relating to the power sector, had asked CIL to sign Fuel Supply Agreements with power plants that have already been commissioned or would go on stream on or before March 31, 2015 for 20 years. Since increasing production is not immediately possible, the only way out is imports, an CIL official said on condition of anonymity.