India Restores Three Canceled Coal Block Licenses to NTPC

From Fox Business

The licenses were canceled in June 2011 due to delays in developing the reserves, and the company has since been lobbying for their restoration.

The coal ministry said a decision to withdraw the earlier cancellation notice was taken “keeping in view the impending disinvestment of NTPC.”

The government hopes to raise around $2.3 billion by selling 9.5% of NTPC through the sale of shares on stock exchanges in February. The divestment is part of a program of government share sales to fund social programs and infrastructure development.

Investors have been cautious about India’s power sector due to severe coal shortages, which have led to frequent power outages in the past two years, and the poor fiscal health of electricity distribution companies, which has impeded the sector’s growth.

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