Standard Post with Image

Doubt in Coal Cost Recovery May Dwindle Government's 1.5 Billion Coal Production Target

News

 Power project developers who had bid aggressively to secure coal mines in the auctions conducted by the government this year are reluctant to mine them.

Source: live mint

SNP Insight

This doubtful scenario by the power project developers can put the future of under construction and upcoming power project at risk. It may increase the investor risk and may result in choking the flow of future investment to the sector. Also this may negatively affect the 1.5 Billion tons domestic coal production target by government by 2020. So, without the planned capacity addition target by the thermal power sector government’s “Power for all” program looks a distant dream.

Source: SNP Infra Research