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Coal Demand Surges on Power Consumption Rebound
23 Feb
Summary
- Power demand recovered significantly in December with 6.3% growth.
- Harsh winter and economic activity boosted January power consumption.
- Coal demand is expected to rise in the coming days due to power recovery.
The Indian coal sector is experiencing a promising rebound in demand, driven by a significant increase in electricity consumption. Following a period of weak demand in the earlier months of the financial year, power consumption exhibited a strong recovery in December, registering a 6.3% growth. This positive momentum has been sustained into January, with power usage continuing to rise due to severe winter conditions and a general improvement in economic activities across the country.
This revival in power demand is expected to translate into a substantial boost for the coal sector in the coming days. After achieving a record one-billion-tonne production milestone, the industry had faced a surprise demand slowdown, prompting major firms to re-evaluate expansion plans amidst growing uncertainties. In response to these dynamics, mjunction services ltd is organizing the 19th Indian Coal Markets Conference, titled "Coalosseum: The Coal Battleground," scheduled for February 24-25 in Kolkata.
