India’s Prime Minister Looking to Break Up Coal India

Reuters reported that India’s prime minister, Narendra Modi, is looking at options regarding the breakup of state controlled Coal India Ltd. (NSE:COALINDIA). Issues in India’s coal sector have made the country a large importer of coal despite its vast reserves, but Modi wants to reform the industry to change that, according to Reuters.

As quoted in the publication:

Modi wants to fix the coal sector quickly to ensure unbroken electricity supply across the country, as in his home state of Gujarat where manufacturing has flourished. Coal generates more than half of India’s power and is the cheapest form of energy. Any reform will begin with Coal India, as it accounts for 80 percent of India’s total coal output, said a source at Modi’s Bharatiya Janata Party (BJP). The world’s largest coal mining company has failed to meet its output targets for years.

Click here to read the full Reuters article.