IT’S a tough time to be an Indian energy giant. The rupee is on the slide, and the Reserve Bank of India’s announcements yesterday, intended to calm markets, were poorly received. Earlier this month, Standard & Poor’s said India may be the first Bric nation to lose its investment grade credit rating.
London-listed Essar however, has problems all of its own, primarily a $1.2bn (£771m) tax bill.
It’s also being held up by the government over its coal mining plans, although it has finally received provisional approval to clear forests in Madhya Pradesh around its Mahan coal block.
Still, while it’s never fun to have the government on your back, if you’re betting on India’s growth to fuel energy demands, better to be complaining about that than slowing domestic demand.
Marc Sidwell is City A.M.’s managing editor.