The Viewpoint - Competing for Idle Capacity How Coal Supply issues are Derailing Thermal Power Projects in India

Bar & Bench January 16 2012

Fuel shortage being faced by power project developers in India is adding significantly to the woes of the power sector, given it is already grappling with challenges of land acquisition and environmental clearances. Both domestic and global power companies are reassessing their expansion plans in India, and considering investments in other jurisdictions due to the increased risk profile of investing in an Indian power sector beleaguered by fuel shortages. With domestic coal and gas production failing to keep up with capacity addition targets, it is unlikely that fuel supply constraints faced by power producers will ease off in the near . . .

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