Indian energy projects, the total cost of which is $ 12.75 billion, have practically lost their investment attractiveness due to lack of fuel for their operation.
In this regard, Indian Finance Minister Palaniappan Chidambaram will sign an agreement with Coal India Ltd., which will supply coal to these facilities, by September 6. “Our top priority is to completely restart the investment cycle,” Chidambaram told reporters in New Delhi today. The official also added that today the government investment committee is considering the most optimal ways to develop energy projects in the country and create the necessary conditions for this.
The total capacity of energy facilities where Coal India Ltd. will supply coal, as the gauges show is 78 gigawatts.
Chidambaram is seeking to bring back investors to strengthen the rupee, which has depreciated more than all currencies in Asia this year, and this year also marks the slowest growth rate of the Indian economy in a decade. In addition, more than half of India's population is left without electricity due to frequent power outages.
The experts believe that the efforts of the Indian government to ensure the smooth operation of the power plants are a positive signal for investors. According to Amit Patil, an analyst at Angel Broking Ltd., the relaunching of the stopped projects will imply new infusions of funds that will undoubtedly help the Indian economy to recover.
The freezing of energy projects, the suspension of the construction of roads and seaports caused investors to leave India, which led to an unprecedented current account deficit and the depreciation of the rupee to a record low.
