Just when we thought OPG Power Ventures (OPG) was ripe for growth, the power plant operator announced that increases to the forecast coal price would hit its performance for the 2018 financial year. Coal prices have risen in recent months, leading to an average landed cost of coal for the group of 4,420 Indian rupees per tonne (£53) for the three months to June 2017, up considerably on the 3,526 rupees level for the 2017 financial year.
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But that price is expected to fall by a tenth over the period to March 2019, in part due to policy changes from the Chinese government that will restrict imports and scrap some 170GW of both outdated and planned coal power plants. Domestic production of coal in India is also due to increase.
