Other key sectoral reforms are being discussed. Reform of the way captive mining blocks are handed out (moving from an allocation to an auction system) should lessen potential corruption and cronyism. There’s also the possibility of changing laws to allow in international mining companies. Neither move will have a dramatic near-term effect on supply, but both would be important steps to ensuring substantially increased long-term production.

Of course, while the promises of a new day ahead seem enticing, long-time watchers of the sector will certainly maintain a healthy scepticism as they wait to see which of these proposed reforms survives the political process. India’s economic growth is heavily dependent on the successful reform of the coal sector. Initial statements by senior officials indicate that the UPA is aware of the necessity of reform and eager to act. The success or failure of their efforts will tell us a great deal about the future prospects not just for reform of the coal sector, but for reform and disinvestment of state-owned enterprises throughout the Indian economy.

Jeremy Carl is a Research Fellow at the Freeman Spogli Institute of International Studies at Stanford University, where his work focuses on Indiaexpress@expressindia.com