MUMBAI: Indian government to open up the coal sector to private players may have brought joy to a few companies hoping to exploit the mineral to fuel the country’s growing energy needs, but overall last week’s decision is unlikely to bring about any dramatic changes.
The National Democratic Alliance (NDA) government had initiated reforms in the sector nearly three years ago by amending existing laws. Coal mines were nationalised in India way back in 1973, and for the past 45 years the industry was dominated by state-owned monopoly Coal India Ltd (CIL) and its subsidiaries.
In 2015, the government allowed private players to enter commercial coal mining, but the companies had to restrict supplies to specific sectors. The industry’s response has also been poor and the fourth round of auctions towards the end of 2016 saw lacklustre response from companies.
