← Policy & Regulation: Pricing and Tariff Control (all topics)
Coal supply structure & transition
What it is
A single state-owned producer supplies over 80% of India's domestic coal, at administered prices under fuel supply agreements with linked consumers. Rail evacuation rather than mining capacity is often the binding constraint
Calcined pet coke for aluminium anodes depends on imported green pet coke
Impact on industries
- Single-supplier dominance at administered prices means consumers have neither pricing negotiation nor alternative sourcing at scale
- Rail evacuation constraints cap effective supply regardless of mine output, so pithead stocks and consumer shortages coexist
- Administered pricing insulates domestic consumers from seaborne coal volatility, which is a genuine advantage for power and cement
- Energy transition implies long-term decline, and coal gasification is the stated diversification though it remains early