Coal India Limited is misleading shareholders by concealing information on the level of its extractable reserves, which could be exhausted in 17 years. The company has failed to disclose to stock exchanges that its extractable coal reserves are in fact 16% less than stated at the time of its 2010 listing - a violation of Indian stock exchange rules.
This analysis also casts doubt on the ability of India to sustain its planned investment in coal-fired power plants. India has plans to add over 100,000 MW of new coal fired power by 2017, even as the company struggles to supply existing power plants and spiralling coal imports from Indonesia are hurting consumers, endangering India's energy security and the country's economy.
Coal India Running on Empty