Coal India shields consumers from input cost surge

A SHARP SURGE in key mining inputs—industrial diesel prices rising 54% and explosives raw material costs jumping 44% within weeks has significantly increased coal production costs, underscoring the impact of global supply disruptions on India’s core energy sector.

- SAURAV ANAND

State-run Coal India (CIL), which produces the bulk of the country’s coal, said it is absorbing the cost escalation to shield consumers.

“Despite spiralling operational costs, the company is absorbing the price shock, insulating India’s coal users from an escalating cost burden,’ it said.