Released on = June 9, 2006, 4:23 am

Press Release Author = RNCOS

Industry = Energy

Press Release Summary = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm)
With efforts by the government and the private players the ailing coal industry can
be morphed into a successful entity.

Press Release Body = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm) Fifty
Six percent of India\'s commercial energy requirement is met with coal. To meet the
increasing demand India produces 320Mn Tons and imports close to 32Mn Tons of coal
annually. Although, India has the world\'s 3rd largest hard coal reserves second only
to the United States and China, the country is largely dependent on imports for
meeting its requirement.

To reduce dependency on imports, India is attempting to expand production.
Significant investments need to be directed towards enhancing local coal quality and
for expanding mine capacity. Since, Coal and Electricity are related industries, the
reforms in each of the sectors need to be accelerated in tandem.

Although liberalization has been progressively introduced in the Coal industry,
however the industry continues to be plagued with bottlenecks. Duties and tax
continue to be levied on imports. The government has a virtual monopoly and
exercises control over the distribution channels. State-owned Coal India Ltd
contributes 88% of total Indian coal produce.

The reforms need to be directed towards accomplishing two primary objectives.
· First, to make the Coal sector globally competitive by doing away with
bureaucratic rigmarole and control.
· Second, to increase market demand by making the allied Electricity industry
financially viable.

Realizing the needs and the growth potential of the sector, the government has made
the timely move to open it to foreign investors. In addition to widening the scope
of FDI in the Coal sector, incentives have been offered to private companies.100%
equity in the Indian subsidiaries has been allowed to Private companies setting up
coal washeries. 100% foreign equity has been granted to private companies engaged in
mining coal for captive consumption. 74% foreign investment has been allowed to
companies engaged in Iron & Steel production and Cement production.

Private players can reap benefits by strategically positioning themselves in the
Indian Coal industry, which is set out for a makeover. RNCOS' market research report
"Indian Coal Industry: Opportunities for Growth (2006)" explains the various aspects
of the Coal industry. A comparative analysis of the Coal industry in the global
scenario has been presented with a focus on the performance of the key players.
Graphs and charts have also been incorporated.

It focuses on the following issues:
· Global Coal industry scenario
· Indian Coal sector in global perspective
· Recent trends and developments in the India Coal sector.
· Key driving forces in Indian Coal sector
· Company analysis of the major players in the Indian Coal sector

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