Restructuring India's coal industry

India is blessed with abundant coal but it has not always made best use of this resource. It could be time to imitate China’s mining prowess.
Productivity in India's coal mines remains low due to a lack of mechanisation
Productivity in India's coal mines remains low due to a lack of mechanisation

India’s coal industry has seemingly avoided restructuring after paying a special dividend earlier this year that has helped the government to meet its divestment target.

Coal India had been slated to perform “national service” a euphemism for the government’s use of state-owned enterprises to manage fiscal and monetary policy targets  at the end of last year through the sale of a 5% stake. The government, which owns 90% of Coal India, had also asked Deloitte to study the feasibility of splitting up the company, and the consulting firm submitted its report in January.

Both plans have since been shelved.

Manmohan Singh, the country’s...

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