Wednesday, July 11, 2012
| Posted by: Grant Thornton
Categories: India, India Watch Issue 17 | Tags: india, Growth, India's GDP, Power Shortages, power stations, India's Legislation, Coal deficit, Coal, electricity prices, coal prices, Coal supplies, coal access, Power, Renewable energy
Despite threats to India’s GDP growth, power demand in India remains resilient. Against this, a significant barrier to entry has arisen: access to coal. This will slow supply of new capacity, maintain a power deficit and put upward pressure on prices, despite the threat of lower growth. Companies that have secured access to coal, or those that are not dependant on it, are now in a strong position to benefit from better pricing and continued growth opportunities for new projects.