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energy | IST

Coal crisis: Economies back to normalcy leading to rampant demand, says Care Advisory & Research

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Care Advisory & Research said economies are coming back to normalcy leading to rampant demand and that is driving energy prices reflecting in the demand-supply mismatch.

Care Advisory & Research on Tuesday said economies are coming back to normalcy leading to rampant demand and that is driving energy prices reflecting in the demand-supply mismatch.
In an interview with Tushar Shah, the director, said, "Australia and Indonesia are the two countries which are the biggest exporters of coal. India is one of the largest coal importers. So definitely,  assets or companies in those geographies are likely to have the benefit of inflated prices notwithstanding, one will have to look at whether they have fixed-price contracts with their customers and what kind of prices change in their real deliveries. If there are long-term contracts and commitments, one would have to still abide by the same. So with all of those, obviously, one will have to really take a look at it in terms of how much windfall can come in."
The global energy shortage is echoing around the world and India is no exception. Coal stocks at the various power plants in India are at critically low levels. Several states are reporting power outages and are sounding the alarm bells over possibly more possible blackouts.
The chief ministers of Delhi and Andhra Pradesh have written to Prime Minister Narendra Modi seeking his intervention. Union home minister Amit Shah held a meeting with power minister RK Singh, coal minister Pralhad Joshi on Monday along with other senior officials to discuss the current supply situation and coal shortage hassles.
For the entire interview, watch the video