Date: 5th Oct 2021 | Publication: Ausbiz
Mugunthan Siva, India Avenue Investment Management MD is usually upbeat about India’s growth and investment potential. Now, this energy crisis is creating bumps as Coal India – producing 80% of India’s Coal – is under pressure to deliver. While surging coal prices would normally trigger higher electricity prices, for the key manufacturing and tech sectors, there are fixed-price contracts in place. The result? Prepare for blackouts. In the background, the Indian government is under increasing pressure to commit to a low carbon/net zero target, but is progressing at a glacial pace.