The environmentalists in Australia has plotted a very powerful plan, which may affect the export of coal from Australia. All the projects will be delayed and production will be hampered in 2012 and 2013.
The coking coal that is fed to the coke ovens of steel plants in India are mainly exported from Australia. As the coal export will plummet, the steel industry will look towards Indian coal to feed their plants. But the domestic coal is by far insufficient for Indian Steel Industry, as the coking coal in India is very limited. The power sector has maintained the price structure for non-coking coal but for coking coal it will change. Thus, increased price of coking coal and reduced supply may lead to astronomical prices of steel.
The price increase may stop many construction projects in the middle, thus reducing the demand of steel. The share market will plummet. Index of Industrial Production(IIP) which is suffering a lot these days will further suffer and may again go south. The pressure may be felt by captive mines, though there is very little potential there, but increased pressure of production may lead to neglecting safety practices. Reduced safety may lead to accidents, and this may further hamper the production. The coming financial year would be baleful for steel industry.
This may lead to lesser demand of power in future by steel industry and thus power sector may diversify their field of interest. The surplus power may be diverted to domestic purposes which will be a great step towards inclusive development. It may also fuel the research being done in Smart Grids.
The coking coal that is fed to the coke ovens of steel plants in India are mainly exported from Australia. As the coal export will plummet, the steel industry will look towards Indian coal to feed their plants. But the domestic coal is by far insufficient for Indian Steel Industry, as the coking coal in India is very limited. The power sector has maintained the price structure for non-coking coal but for coking coal it will change. Thus, increased price of coking coal and reduced supply may lead to astronomical prices of steel.
The price increase may stop many construction projects in the middle, thus reducing the demand of steel. The share market will plummet. Index of Industrial Production(IIP) which is suffering a lot these days will further suffer and may again go south. The pressure may be felt by captive mines, though there is very little potential there, but increased pressure of production may lead to neglecting safety practices. Reduced safety may lead to accidents, and this may further hamper the production. The coming financial year would be baleful for steel industry.
This may lead to lesser demand of power in future by steel industry and thus power sector may diversify their field of interest. The surplus power may be diverted to domestic purposes which will be a great step towards inclusive development. It may also fuel the research being done in Smart Grids.
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