Increasing coal Prices- Its Impact on the Power Sector

Context:

The war between Ukraine and Russia has led to shortage of supplies of coal from Russia, This has a major impact on the power sector.

It is well known that from the past few months that the domestic supplies of coal in India has been come down.
And now due to the tensions in Russia-Ukraine have led to high international prices of coal.
The impact has already been felt by Few states in India with many power cuts, as there will be more power consumption in the summer season.
This dependence on import of highly prized Will increase the cost of production of the Discoms and other energy producers.

The primary reason is the war in Russia and doctrine which has led to the shortage of supplies of the coal.
Unless coal India ramps up its coal production up to 700,000,000 tonnes per year in the next fiscal year it cannot meet its domestic demand.
Australia and Indonesia which are the two important countries terms of import of coal, the prices of Australian coal was at peak recently.

Source: THE HINDU.