International Companies Will Require Time to Understand India's Coal Sector to FDIby Rudy P. SysAdmin at howtofindthemoney
International companies will require time to understand India's supply chains and how to meet growing demand of coal, following opening up of the Indian coal sector to foreign direct investment, feels World Coal Association.
“As with any large and complex investment decision, there are many risk factors to consider when investing in energy – the location of the blocks, transportation logistics, the prospect of further blocks coming to auction in order to grow your position, the end-user like power sector or for iron ore and steel, just to name a few. Investors will take their time to properly consider all of these elements as they would in any market. And it is these elements that will guide investment and the speed of the opening up of the coal sector in India,” World Coal Association chief executive Michelle Manook said.
“We can see from the recent government-to-government initiatives between India and Russia over the import of metallurgical coal that the Indian government understands the importance of government policy which encourages investment security and diversity.
“What is also clear is that coal will remain the main energy source in India for the next 30 years and that investment in the coal industry is vital to modernising the coal industry, particularly through innovation. This will create efficiencies along the production chain and also create better and cleaner energy for consumers.
“Reliable, stable electricity grids are vital to supporting the development of industries, businesses and the public services that are the foundations of modern India. Coal will also support the growth in India’s renewables by providing system reliability, which complements renewable intermittency.
Alongside this, coal is key to the materials – the steel, cement, concrete – that are used to build our societies.
“The evolving coal industry is meeting both economic and environmental challenges through technology and innovation. What is misunderstood, is that technologies are available today that significantly reduce or eliminate CO2 emissions from coal and, of equal importance, eliminate emissions that contribute to air quality issues.
“Investors, government and industry need to come together to create an investment environment that supports growth and allows environment goals to be achieved, including financing all low-emission technologies.” She said the World Coal Association looks forward to engaging with the Indian Government and local industry in the new year to support this evolution.
The 10 largest coal producers and exporters in Indonesia:
Source: India Times
Created on Dec 7th 2019 04:35. Viewed 203 times.
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