Released on = June 8, 2006, 5:11 am

Press Release Author = RNCOS

Industry = Energy

Press Release Summary = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm)
Coal industry's prospects to reap the benefits of burgeoning economic activities
have never been brighter, however like all opportunities this also has challenges
involved.

Press Release Body = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm) With
the mushrooming of various coal based power projects and allied industries, India's
coal demand within the next decade is expected to reach unprecedented levels. The
industry will emerge as the driver for the core infrastructure sectors like Power,
Steel, Cement etc.

An estimated $20Bn would suffice to bridge the gap between the level of production
in the public sector and the projected demand of 700Mn Tons for 2009-10.

Public sector corporations are expected to invest an exorbitant $ 9Bn in order to
increase their production by about 270Mn tons by 2009-10 with the balance
requirement being met through imports in the short term and new investments in the
long run.

These organizations also need to create an innovative and transparent work
environment. Efficient coal mining operations in the public sector necessitates
sufficient management autonomy. For improving the operations in the mines of coal
India limited, World Bank has sanctioned a loan of the tune of $ 1.2Bn.


RNCOS' recent market research report "Indian Coal Industry: Opportunities for Growth
(2006)" gives an insight into the prospects and the problems of the coal industry in
India.

The highlights of which are:

Potential:
· India is the world's third largest producer of coal.
· India's coal reserves of approx. 200Bn Tones is the 4th largest in the world.
These deposits are predominantly concentrated in the eastern, central and southern
parts of the country
· About 70% of the total energy requirement of the country is met with coal.
· With the current average daily coal extraction capacity of around 0.8 Mn tons, the
reserves are likely to last over a 10 decades

Issues:

· Government's initial budgetary support of 95 % to the public sector coal companies
(till 1990) has now come down to 10% of the plan outlay.
· The increasing demand of coal cannot be met through the Public sector alone.
· Coal units are unable to generate investible surplus, as administered pricing
structure has not been remunerative enough.
· For reasons of non-viability, development of new mines has not been taken up.
· Mining areas with huge untapped potential do not have adequate transport
infrastructure.

About RNCOS:
RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

To purchase your copy: http://www.rncos.com/Report/IM0371.htm
For more information about the report please visit www.rncos.com


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