Extended rains hit coal supply to power plants and raise spot prices

Incessant rains coupled with low rake availability have impacted coal supply to power plants, especially in the northern region. Coal supply at the spot auction has also been hit, leading to high bid prices. 

Coal companies call this a temporary phenomenon but have expressed their reservations over rake availability. The price in the spot auction touched a new high of Rs  2,966 per tonne in August, while the supply remained tepid. 

For low coal supply to power plants in the north, the three coal companies under Coal India – Eastern Coalfields, Mahanadi Coalfields and Central Coalfields Limited — have cited