Coal Demand Set for Revival Amid Rising Power Consumption

The country's coal demand is expected to rebound due to increased electricity consumption. After months of decline, power demand surged by 6.3% in December and continues to rise. This shift could bolster coal demand despite uncertainties in the sector. The Indian Coal Markets Conference will address these challenges.

The nation's coal demand is on the verge of a revival, spurred by a notable increase in electricity usage, according to an industry expert. Vinaya Varma, Managing Director of mjunction services ltd, highlighted that after witnessing negative growth in October and November, December saw a 6.3% surge in power consumption. This trend has persisted into January, fueled by a severe winter and economic recovery.

With power consumption on an upward trajectory, coal demand is also expected to rise, Varma noted. However, the coal sector faces challenges, as it reconciles with a potential demand slowdown after achieving a record production milestone of one billion tonnes. This has led major public enterprises and commercial miners to reconsider expansion plans amid growing uncertainties.

Ahead of this backdrop, the 19th Indian Coal Markets Conference titled 'Coalosseum: The Coal Battleground,' set for February 24-25 in Kolkata, will bring together 36 prominent speakers from various industries such as coal, power, cement, and steel to discuss looming issues in the coal and energy sector.

(With inputs from agencies.)