New Delhi: Prime Minister-elect Narendra Modi is exploring breaking up state behemoth Coal India Ltd and opening up the sector to foreign investment to boost output and cut imports, said two sources with knowledge of the matter.
Red tape, strikes, protests against land acquisition and delays in obtaining environmental approvals have kept coal output far below demand, making India the world’s No.3 importer even though it sits on the fifth-largest reserves.
Mr Modi wants to fix the coal sector quickly to ensure unbroken electricity supply across India. Coal generates more than half of India’s power and is the cheapest form of energy. Any reform will begin with Coal India, as it accounts for 80 per cent of India’s total coal output, said a source at Modi’s Bharatiya Janata Party (BJP).
