Fuel is the largest controllable cost for most process industries. Buying coal well is a discipline, here's the checklist we run for our own trading desk.
1. Buy on GCV, not on name
Price per tonne means nothing without calorific value. Compare on ₹ per 1000 kcal: a ₹6,200/t coal at 5,800 GCV is cheaper energy than ₹5,400/t at 4,800 GCV. Specify GCV bands, moisture and ash limits in the contract, with testing and rejection norms.
2. Imported vs domestic
Imported (Indonesian/South African) offers consistent GCV and lower ash; domestic linkage/e-auction coal can win on landed cost near mining belts. The right answer changes with freight, forex and season, a desk that trades both keeps you on the cheaper side of the switch.
3. Logistics is half the price
Rake-load movement beats road beyond ~300km, but demands plant-side handling readiness. Port-to-plant chains need vessel, CHA, and convoy coordination. Every handling point adds cost and pilferage risk, direct-to-plant supply strips the layers out.
4. And the ash?
If you run boilers at scale, ash evacuation is a cost centre you can convert, we're engaged with thermal plants across India on exactly this. Explore our Coal supply desk →