Power cost to remain high as imported coal prices soar: Ind-Ra

Short-term power prices are likely to remain elevated in the near term on account of a continued increase in imported coal prices, according to rating agency Ind-Ra.

It noted that a large part of the increased power generation would continue to be met through coal-based plants, although coal output is not increasing to the desired level.

This is reflected in low inventory stocks at power plants, and therefore, a part of the increased energy demand will have to be met through imported coal, Ind-Ra said.

In light of the expected high imported coal prices, the short-term power prices in India are likely to remain elevated, it stated.