India’s ambitious drive to increase coal production to meet its surging energy demand is facing hurdles as banks show reluctance to finance newly auctioned mines. Despite growing pressure from global investors to reduce fossil fuel exposure, most Indian banks are yet to formulate coal divestment policies, resulting in financing delays for the majority of the mines.

Protests have erupted against the expansion plans for the Gevra coal mine in the eastern province of Chhattisgarh, posing challenges to Coal India Ltd’s ambitions to increase its annual capacity to 70 million tons.