Questor share tip: Essar Energy's Indian woes may drag on Investors have lost out Since listing, the company has been blighted by a number of external issues - and it has also had to push back the timetable on its power stations building programme. Concerns surround regulatory issues in India and the company's liquidity. Investors had more gloomy news last week when Essar shares fell 15pc on Monday. This was sparked by a worse-than-expected full-year pre-tax loss of $881m (£556m). The shares have plunged by 75pc since they were first floated in 2010. Regulation and tax The group built its power plants with a view to using coal blocks that the government has allocated for this purpose. But the government has failed to give consent to start mining, so Essar is buying more expensive coal from abroad. Last month, Dr Manmohan Singh, India's prime minister, hosted a one-day summit to try to find a resolution. A decision is yet to be made. Essar also faces the imminent prospect of paying $1.23bn in sales tax to the Indian state government. Essar is appealing the ruling. One for the brave The average price target of the seven City analysts monitored by Bloomberg is 217p - almost double the current share price. Should the regulatory issues in India, relating to forest clearing, be resolved and a new share issue at India-listed subsidiary Essar Oil, go well, then there is plenty of upside. However, the Indian situation could drag on for some time, so it is one to avoid until the situation becomes clearer. However, bold investors may wish to have a small holding in the speculative part of their portfolio.