Home » Coal-rich nations' policies to hit power cos

Coal-rich nations' policies to hit power cos

Coal-rich nations' policies to hit power cos

Development of new pro­je­cts could face problems from the regulatory reforms being undertaken by coal-rich nations – from where the fossil fuel is sourced. After Indonesia and Australia, two major coal supp­liers, recently tightened mining and export norms, South Africa is planning to nationalise mines. These moves may adversely aff­ect Indian power projects.  
Indian power companies, including Tata Power, Reliance Power, Adani Power, Lanco Infratech, JSW Energy and Essar Power, among others, who were considering South Africa as a potential source for fueling their new projects, may find it diffi­c­ult sourcing the fossil fuel. Most of these companies have acq­ui­red coal assets in Indonesia, Australia and South Africa and have been exploring options to secure fuel supply to ensure pro­ject funding and other regul­a­tory clearances.

Association of Power Pro­d­ucers has sought govern­ment nod to pass on the escalation  
in raw material cost to cus­to­mers after recent rule changes in Indonesia restricted exports and Australia imposed addi­tional tax.

Comments

Leave a Reply