India likely to face more power cuts as coal supplies run low

India is likely to suffer more power outages this year since utilities' coal stocks are at their lowest pre-summer levels in at least nine years and energy consumption is predicted to climb at the highest rate in at least 38 years, according to authorities and analysts. Power outages have the potential to hamper industrial production in Asia's third largest economy, just as the sector was beginning to recover following months of COVID-related lockdowns.

According to a Reuters examination of official statistics, the lack of power as a proportion of demand has risen to 1.4 percent in the previous week, above the 1 percent deficit in October, when India last experienced a significant coal scarcity, and the 0.5 percent shortfall in March.

The southern state of Andhra Pradesh, which is home to factories operated by automakers such as Kia Motors and medicine manufacturers like as Pfizer, is suffering an 8.7 percent electricity shortfall, according to the statistics, forcing it to resort to extensive power outages.

Coal stocks at power plants had an average stock of nine days at the start of current fiscal year, which began on April 1, the lowest level since at least 2014. According to federal rules, power plants should maintain at least 24 days of stock on hand on average.

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According to authorities, industrial states such as Gujarat and Maharashtra have resorted to load shedding, with government statistics showing eastern regions such as Jharkhand and Bihar, as well as Haryana and Uttarakhand in the north, reporting power shortages of more than 3% apiece.

Summer electricity demand in India is likely to skyrocket, with weather forecasters projecting maximum temperatures above normal in several northern and central districts in April. Total power output is expected to climb 15.2 percent in the fiscal year ending March 2023, according to a federal power ministry memo obtained by Reuters, with demand expected to rise at the quickest rate in at least 38 years.

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