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The demand for coal in India is not projected to drop anytime soon. This is has nothing to do with the financial viability of coal power viz-a-viz other sources

The demand for coal in India is not projected to drop anytime soon. This is has nothing to do with the financial viability of coal power viz-a-viz other sources. This is a combination of multiple factors - Indian coal is pretty poor quality and has lower energy density, imports could be better economically for power plants. - The true cost of mining with all the regulation and corruption is making imports cheaper for many plants. - Major mining players are grappling with huge debt and do not necessarily have the ability to take up new projects - Coal India a government owned entity controls most of the market and transportation is dependent on Indian Railway also fully government owned, other contracts/ services have to be also favorable/in-place to make a mine viable

kristianp 5y ago
Adani recently commissioned a new mine in Australia, much to the chagrin of many. So that backs up your comment about imports.
rablackburn 5y ago
> The true cost of mining with all the regulation and corruption is making imports cheaper for many plants. Where has so much less regulation around coal mining that local production is being undercut?
- manquer 5y ago
  Regulations not just on environmental and operational aspects but also on things like pricing, who to sell to (was recently relaxed for these bids), what quantity, when they will pay ( Government is not that prompt, you cannot do much about it) etc. The Government pretty much owns most of the demand (power plants), transport (Railways), the largest player (Coal India) so the economics can become really distorted
- safog 5y ago
  It’s not really specific to coal mining - everything has so much red tape in India. Part of it is colonial heritage and the other part of it is socialist roots of the founders. India has never had an economic right party in power at all. It has been various flavors of populism and socialism. The recent agriculture bill is an interesting case in point.

kristianp 5y ago

Adani recently commissioned a new mine in Australia, much to the chagrin of many. So that backs up your comment about imports.

rablackburn 5y ago

> The true cost of mining with all the regulation and corruption is making imports cheaper for many plants. Where has so much less regulation around coal mining that local production is being undercut?

manquer 5y ago
Regulations not just on environmental and operational aspects but also on things like pricing, who to sell to (was recently relaxed for these bids), what quantity, when they will pay ( Government is not that prompt, you cannot do much about it) etc. The Government pretty much owns most of the demand (power plants), transport (Railways), the largest player (Coal India) so the economics can become really distorted
safog 5y ago
It’s not really specific to coal mining - everything has so much red tape in India. Part of it is colonial heritage and the other part of it is socialist roots of the founders. India has never had an economic right party in power at all. It has been various flavors of populism and socialism. The recent agriculture bill is an interesting case in point.