Mumbai, March 17 (Coal Geology) While warning of higher petroleum fuel prices, India’s central bank Thursday said it was too early to assess the impact of the devastating earthquake and tsunami in Japan that has triggered fears of one of the worst nuclear disasters.
‘It is as yet too early to assess the macroeconomic consequences of the natural disaster in Japan,’ the Reserve Bank of India (RBI) said in a mid-quarter review of its monetary policy for the current fiscal.
‘As normalcy is restored, the expenditure on reconstruction may provide a boost to the economy. However, substitution of thermal for nuclear energy in Japan may exert further pressure on petroleum prices.’
There have been fears of a meltdown at a nuclear power plant in Japan ever since last week’s magnitude-9 earthquake and ensuing tsunami disabled the cooling systems at all its reactors.
The nuclear plant at Fukushima in northeastern Japan was rocked by a hydrogen explosion Tuesday as well as a fire early Wednesday adding to complications and raising concerns that the fuel rods will melt and release radiation.