Development of new proÂjeÂcts 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 suppÂliers, recently tightened mining and export norms, South Africa is planning to nationalise mines. These moves may adversely affÂect 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 diffiÂcÂult sourcing the fossil fuel. Most of these companies have acqÂuiÂred coal assets in Indonesia, Australia and South Africa and have been exploring options to secure fuel supply to ensure proÂject funding and other regulÂaÂtory clearances.
Association of Power ProÂdÂucers has sought governÂment nod to pass on the escalation
in raw material cost to cusÂtoÂmers after recent rule changes in Indonesia restricted exports and Australia imposed addiÂtional tax.