- Risk factor 14- Our business, operations and prospects may therefore be affected by various policies and statutory and regulatory requirements and developments that affect the thermalpower industry in India in general or public sector power utilities in particular, including those introduced oradministered by the Ministry of Power, GoI and the Central Electricity Authority ("CEA").
- Risk factor 17- The price of raw coal sold under our FSAs does not fully reflect market prices for coal in India or in international coal markets. Inaddition, in the event that our production costs or other costs associated with the purchase of our coal that arepayable by our customers, such as transportation cost and statutory levies, were to increase, there can be noassurances that we would be able to increase the price of coal to offset any such increases. For policy or other reasons, we may not price our coal at levels that would adversely impact the power sector or the Indianeconomy.
- Risk factor 55- The interests of the GoI may be different from our interests or the interests of our other shareholders. As a result, the GoI may take actions with respect to our business and the businesses of our peers and competitors that may not be in our or our other shareholders' bestinterests. The GoI could, by exercising its powers of control, delay or defer or initiate a change of control of ourCompany or a change in our capital structure, delay or defer a merger, consolidation, or discourage a mergerwith another public sector undertaking.In particular, given the importance of the coal industry to the economy, the GoI has historically played a keyrole, and is expected to continue to play a key role, in regulating, reforming and restructuring the Indian coalmining industry. The GoI also exercises substantial control over the growth of the power industry in India which is dependent on the coal we produce and could require us to take actions designed to serve the public interestand not necessarily to maximize our profits.
As an aside, as pointed out in the economic survey Chapter II, In a market where all dominant players are public-sector companies, ‘market price’ is not a very meaningful concept. It is easy for government to control state-owned companies through nods and winks. Hence, even if TCI wins an injunction for stopping such actions(very unlikely), the Government can still get its way. Hence, Luthra & Luthra will laugh its way to the bank, but TCI is not likely to see a single rupee of compensation.