The eased rules for coal mining are intended to attract foreign companies to domestic coal sector and reduce India’s dependence on fuel imports
Apart from others, the opportunity to coal mining is targeted on multinational mining companies Glencore, BHDP Group, Anglo American or Peabody Energy Corp. India’s cabinet has eased laws for coal mining and aims to attract foreign players. According to Pralhad Joshi, India’s coal minister, the decision aims to reduce dependence on domestic energy sector on foreign imports.
India’s government will offer global tenders with shares in domestic state companies probably in March already. As such India could eliminate its dependence on near-monopoly coal importer Coal India.
India currently imports around 180 million ton of mainly steam coal per year. Around two thirds are covered by Indonesian import. Additionally, about 80% of India’s import is covered by Indonesia and South African Republic. Import from the US, Russia, Australia and Canada represent the remaining 20% of import.
