India is planning to open up commercial coal mining to private companies for the first time in 40 years.
Indian government has already identified which coal mines to auction, and is now finalizing eligibility criteria and revenue sharing terms conditions.
India aims to become energy self sufficient. India has an ambitious plan to double its coal production to 1.5 billion tonnes a year by 2020, as part of PM Modi’s vision
to bring electricity to around 300 million people.
As of now, only government-owned company Coal India is allowed to mine and sell coal in India.
Government now wants private sector participation for more efficiency such as Adani Group, however it may find difficult to attract multinational miners because of the various hurdles which businesses came across while setting project in India.
The hurdles range from dealing with land mafia to environment approvals to change in political parties at center and state level. Enron debacle is one classic example which reflect how multi party system in India at state and center can create confusion and frustration for any Western company.
Make in India Event by UKIBC in London