Coal news and updates

Fixing the coal problem will be the first real test of the Narendra Modi government, according to a report by HSBC on Wednesday. It said that India is sitting on top of plenty reserves it boasts of being among the fifth largest in the world, or some 290 billion tonnes. This could keep the lights on for many decades.

“Coal is the dominant source of electricity, accounting for 66 per cent of generation. And yet, for all its riches, India continues to import the stuff, being the world’s fourth largest international buyer and paying a premium of up to 25 per cent for its overseas purchases,” said HSBC.

Costly imports swell the trade deficit and its frequent unavailability cuts power supply. Last year, India imported some $ 15 billion worth of coal. “Reforms comprise three things extra infrastructure, cooperation by state governments with New Delhi, and restructuring of a public company.

In short, all the challenges Mr Modi faces are neatly rolled one when it comes to coal,” said HSBC report. “By some estimates, a couple of hundred kilometres would suffice to alleviate the bottlenecks. That will require funds and expertise,” said the report.

 

 

 

Source: http://www.asianage.com/