India is trying for a greener future, pushing to add more renewable sources into its energy mix. However, the country's enormous dependence on coal to meet its growing energy needs is not likely to end anytime soon.
While Asia's third-largest economy gradually climbs the ladder of clean energy over the next few decades, policymakers in New Delhi in the meantime need to find more efficient ways of using of coal to generate power.
“Given that India will continue to rely on coal power in the coming decade, it must rein in the wasteful use of coal and improve generation efficiency,” Karthik Ganesan, director of research co-ordination at the Council on Energy, Environment and Water (CEEW), a Delhi-based policy research institute, says.
Coal-based power accounts for about 65 per cent of total electricity generated in India. The country, however, aims to grow the ratio of renewables in its energy mix as it targets 450 gigawatts of clean energy by 2030. India is betting on solar power to lead the push for green energy as it tries to meet its commitment to reduce its carbon footprint and sate the growing appetite for power over the coming decades.
India is the third-largest emitter of greenhouse gases in the world and coal is a major contributor to its carbon footprint. But under the Paris climate change agreement, it has committed to cut its emissions as a percentage of its gross domestic product by 33 to 35 per cent by 2030 from 2005 levels.
Coal will continue to play a vital role in fuelling the country's economy despite the fossil fuel's harmful impact on the climate, analysts say. The International Energy Agency forecasts that India is expected to account for the largest share of energy demand growth over the next two decades, with its energy consumption almost doubling to meet the needs of an expanding economy and urbanisation.
“Renewable energy technologies are still developing and issues of intermittency and storage are still being resolved,” Vinaya Varma, managing director and chief executive of mjunction services, an e-commerce platform that provides online coal sales services in India, says.
“Unless renewable energy becomes a source of stable and base-load power through proven and economical technologies, coal will continue to play a key role in India's energy sector.”
It will be a long process for India to wean itself off coal, partly because many stakeholders depend on revenue from the industry.
State-run Coal India “alone accounts for over 85 per cent of total coal production in India and it has already set an ambitious target to increase production in subsequent years”, says Binod Modi, head of strategy at Reliance Securities, a Mumbai-based broking house.
“Rich coal reserves in various areas of the country offer huge employment [opportunities] ... also ensure hefty taxes for the government and sizeable business for railways,” he says. “Considering these facts, we believe coal is unlikely to be phased out [soon].”
Another challenge for India is the inefficiency of its coal industry and the financial distress of its power sector. Despite having some of the largest coal reserves in the world, India is a net importer of the fossil fuel.
“We believe land acquisition issues, the lack of adequate technology and transparency [issues] in allocation process have been key concerns for the industry over the past years,” says Mr Modi.
The country's coal industry “is facing major pressures as a result of a changing market and policy context, as well as near‐term challenges related to Covid‐19”, the IEA said in its India Energy Outlook 2021 report.
“In the face of these pressures, coal [industry] needs to switch to a much leaner, more cost‐efficient model for operation and investment,” the IEA added.
Measures to boost efficiency could include improving the operational performance of mines and plants, streamlining logistics and bringing in more private sector investment – something that India is already working towards, it adds.
While several countries are looking to reduce their use of coal − including Germany, which aims to phase out coal as an energy source from its power mix – India this year launched its largest-ever auctions of coal mines. This is part of government plans to open up the industry to allow the private sector to play a larger role in coal mining, allowing winning bidders to produce and sell the fuel. The ultimate aim is for India to become a net exporter of the fossil fuel.
“[The] opening of coal sector for commercial mining was a fantastic move to improve productivity in the sector,” says Reliance Securities' Mr Modi. “This should essentially aid India to reduce its import dependence in the long run.”
Given that India will continue to rely on coal power in the coming decade, it must rein in the wasteful use of coal and improve generation efficiency
Karthik Ganesan,
director of research coordination, Council on Energy, Environment and Water
However, India received no bids in July for 48 of the 67 mines it had put up for auction, with investor interest dampened by environmental concerns and low margins.
Improving efficiency becomes all the more pressing as India's coal industry has been impacted by the Covid-19 pandemic that has affected demand for power. This resulted in Coal India reporting a 23.9 per cent decline in its net profit for the financial year ending in March, compared to the previous fiscal year.
However, despite weaker demand, production remains on an upward trajectory. India's coal production is set to increase to 827.8 million tonnes this year from 777m tonnes in 2020, analytics firm GlobalData said in a report in June.
GlobaData describes this as “an impressive feat given the operational disruption caused by Covid-19”, adding that “a key to this increase in output is the entry of private players to the industry”.
The recent deadly second wave of coronavirus infections in India has also posed some short-term challenges to the industry.
“The sharp increase in new Covid-19 cases since the beginning of March 2021 and fresh lockdowns across key coal-producing states – such as Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra and Telangana – has hampered India’s coal operations,” says Vinneth Bajaj, a mining analyst at GlobalData.
Experts say that slower-than-expected growth of demand for power in India has exacerbated the under-utilisation of the country's coal assets.
According to a new study by CEEW, India has an opportunity to save $1.23 billion each year if it shuts down some of its old coal-fired power plants – which consume more fuel than modern facilities – and runs the newer ones for longer periods of time.
The study recommends considering 30 gigawatts of India's coal-based capacity for accelerated closure.
“Decommissioning a part of the fleet today could make coal power generation more efficient and less polluting, and accelerate decarbonisation in the power sector,” says Mr Ganesan. “Decommissioning identified assets will usher in new investments in a more balanced generation system that does not have the sword of surplus hanging over it.”
While coal may not be phased out in the near term, experts say that the share of coal in the energy mix will reduce over time.
“India has not adopted any strategy to phase out coal within a timeline,” says Mr Varma.
The country is increasing its share of renewable energy and several energy companies in India, including Tata Power and state-owned NTPC, have announced plans not to invest in any new greenfield coal-fired power plants.
“With the capacity of renewable energy growing fast and marginal addition to coal-fired power plant capacity, the share of coal in the country's energy mix would be coming down progressively in the years to come,” says Mr Varma.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
UAE currency: the story behind the money in your pockets
The Byblos iftar in numbers
29 or 30 days – the number of iftar services held during the holy month
50 staff members required to prepare an iftar
200 to 350 the number of people served iftar nightly
160 litres of the traditional Ramadan drink, jalab, is served in total
500 litres of soup is served during the holy month
200 kilograms of meat is used for various dishes
350 kilograms of onion is used in dishes
5 minutes – the average time that staff have to eat
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The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Mohammed bin Zayed Majlis
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Conservative MPs who have publicly revealed sending letters of no confidence
- Steve Baker
- Peter Bone
- Ben Bradley
- Andrew Bridgen
- Maria Caulfield
- Simon Clarke
- Philip Davies
- Nadine Dorries
- James Duddridge
- Mark Francois
- Chris Green
- Adam Holloway
- Andrea Jenkyns
- Anne-Marie Morris
- Sheryll Murray
- Jacob Rees-Mogg
- Laurence Robertson
- Lee Rowley
- Henry Smith
- Martin Vickers
- John Whittingdale
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
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Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
