Future tense: Fastest-growing market Asia rethinks coal`s prospects

After riding China's demand train for nearly two decades, Asia's coal industry is looking to a future of smaller markets and slimmer pickings, as buying declines in the world's second-biggest economy and climate change concerns blunt demand.

By far the biggest user of coal-fired power, China is buying less thermal coal from global markets, said delegates to Asia's premier coal conference last month in Bali, both as renewables gain market share and as it digs up more of its own supply.

A backlash against coal is also growing in the West. Last week, investors managing nearly half the world's invested capital demanded ahead of a Group of 20 summit in Tokyo that governments take urgent action on climate change.

Delegates to Coaltrans in Bali, Indonesia, however, said that while coal's glory days are done, reports of its imminent demise have been greatly exaggerated.

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No immediate OFS of Coal India: DIPAM official

Any further Offer For Sale (OFS) in Coal India to raise funds is currently not on the radar and will be decided later, depending on the market, sources said.

"Coal India has met the MPS (minimum public shareholding) target. To that extent there is no obligation for further sale. Rest will be decided later, depending on the market situation," sources at the Department of Investment and Public Asset Management (DIPAM) said.

The Securities and Exchange Board of India (SEBI) directive to all listed companies is to keep the public shareholding at 25 per cent.

Coal India shares were trading at Rs 253.5, down 2.53 per cent at 2.47 p.m. As per BSE data, promoter (government) holds 70.96 per cent as on March 2019 and the public holds 29.04 per cent, with the highest public shareholder LIC P&GS Fund holding 10.94 per cent.

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