Modi’s grand coal plan could be up against too big a barrier
Competition from the Indian state-run monopoly, which gets its coal mines free, may stymie Prime Minister Narendra Modi’s efforts to attract more investments into the sector.
India on Wednesday opened up coal mining to all companies, amending laws that had restricted it mainly to power and metals firms. Unlike Coal IndiaNSE 3.71 % Ltd., new investors will have to bid for the mines.
The nation is trying to increase output as new thermal power plants and steel mills boost demand at home even as the world is turning away from the polluting fuel. Last year, the government allowed 100% foreign direct investment in coal extraction amid surging imports and falling output at Coal India. The move didn’t result in any substantial investment.
