For foreigners, any form of mining in India is problematic. Many a promising project has been choked in red tape by the country’s legendary bureaucracy.

Coal is particularly difficult because it is considered a strategic resource and is even-more heavily regulated. There is a specific ministry just for coal.

Under the rules, foreign companies can operate coal mines, provided they are “captive” to a power station or the like. If they want to sell any coal they can only deal with whoever Coal India says they can, at the price Coal India sets.

However, Indian authorities have struck problems at some of their mines. They know there are resources remaining – they just do not have the technology to recover it.

Austrade senior trade commissioner South Asia Peter Linford said the Indian authorities were looking to Australian longwall and underground coal-mining specialists for answers.

They realise that to get any meaningful investment the terms will have to be attractive. This means there are some new rules afoot.

“The new rules will be the company can come in and invest and sell the coal on the global market at global prices,” Linford said.

“But that’s not in law yet.”

Coal India is also understood to be on a global acquisition hunt with Australia being one of the key preserves on its agenda.

However, Linford has concerns that India’s notorious tardiness will result in it missing the boat.

Given the treacle-like speed with which India’s bureaucracy works, it is likely other acquisitive nations such as China will have everything-not-nailed-down by the time it acts.

Linford said Coal India’s key targets would mostly be coal assets but it would also be looking at some hard-rock operations.