The Centre’s decision to allow 100 per cent foreign direct investment (FDI) in the coal sector and allowing commercial mining of coal has left Coal India worried as it is apprehensive of losing consumers as well as its pricing power in the market.
Company officials are of the view that with these two developments, its largest consumer, NTPC may develop its own coal mining capabilities which in turn will result in reduced demand from it.
A Coal India official said as NTPC develops its own coal mining capability in the next 5-7 years, the world’s largest coal miner risks to lose 100-120 million tonne (mt) of coal supply to NTPC. Every year, Coal India supplies around 200 mt of coal to NTPC.
