India is facing a power crisis, especially exacerbated by the ongoing war between Russia and Ukraine. Of the 12 coal shortage states, several Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, Telangana and Tamil Nadu have complained of power outages.
Currently, pan-India coal supply lasts nine days, in contrast to the average of 25 days over the last decade. One of the reasons for this power crisis is the increase in demand. According to experts, Coal India increased production, but not enough to meet the increasing demand. Russia’s invasion of Ukraine has exacerbated India’s situation in terms of power generation.
Coal accounts for 77% of India’s electricity generation. Of this, more than 12% is imported coal. The Russian-Ukraine War disrupted international coal supply, made coal imports significantly more expensive, and affected India’s coal imports. Another source of energy affected by the current geopolitical upheaval is natural gas.
India’s current coal inventory is 85 million tonnes, the same as in 2017. However, demand in 2022 increased by 25% compared to 2017. According to experts, Coal India has increased production, but not at current demand levels. The lack of stakeholder planning and short-sightedness at all levels has widened the gap between supply and demand.
