Is captive coal mining failing?

While the success of their auctions is being debated, most coal blocks set aside for power generation are either languishing or producing at lower than their peak rated capacities

Reliance Power has terminated the Tilaiya 4000-Mw Ultra Mega Power Project (UMPP) agreement which was to develop associated coalmines and a thermal power project. These UMPPs were awarded with much fanfare and the discovered tariffs that were significantly lower than the then-prevailing electricity tariffs were projected as the success of the business model. However, with only two UMPPs implemented, one with captive mining and the other with imported coal, both having attempted to get compensatory tariffs in view of changes in the business environment, it is important to consider a basic flaw in the business strategy of bidding companies and