Coal supply could play a dampener both for the power sector and the industry at a time when the government is targeting double-digit growth and a $5-trillion economy.
While the power demand is rising with enhanced electricity connectivity and improving supply metrics, domestic coal supply continues to remain laggard as several states and power generators are depending on imported coal.
In view of the anticipated high demand scenario, there may be coal shortage at the power plants.
Inadequate supply of domestic coal forced to import coal to meet the shortfall in domestic coal supply.
India will spend about $1.4 trillion on its infrastructure development in the next five years, Union Steel Minister Dharmendra Pradhan said.
He emphasized that with rapid economic and infrastructural development in India, the demand of steel has seen substantial increase and is expected to increase further in the future as embarks to become a $5 trillion economy by 2024.
He also said that India is determined to raise the per capita consumption of steel from its current low of 72 kg per capita to 160 kg per capita by 2030.
The next set of contract documents to construct road projects on a build-operate-transfer (BOT) basis in the highways sector may have clauses to prevent companies from bidding below the cost just to beef up their order books.