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Can India Overcome Investment Hurdles in Future Coal Projects?

News

It is not unusual for observers and leaders of an industry to feel nervous in India when their sector begins to collapse in developed countries.

Source: ET

SNP Insight

With the new coal linkage policy the mines are directly linked with the distribution companies to hedge the risk of power plant developers. Now the revenue transfer process will be from the distribution companies to the coal supplying companies. As distribution companies are in bad financial state and performing below par, so the future coal projects will have more exposure to risk. Domestic financial Institutions which are still struggling hard with increasing NPA in Power Sector may find it tough to invest in future coal projects. So reluctant foreign investors and skeptical Indian financial institution may squeeze the investment to future coal projects.

Source: SNP Infra Research