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Supply interruption

Power supply could worsen in the near term

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A trigger for the current crisis was power plants shutting down because of heavy losses on buying expensive coal and selling into a highly regulated electricity market

Business Standard Editorial Comment Mumbai
The early onset of summer in several parts of the country and the ongoing economic recovery from the pandemic-induced disruption have again exposed the inadequacies of the Indian power sector. Several states are reporting power shortages. The Union government this week took steps to address the situation. It allowed “tolling” to optimally utilise coal linkages because it is easier to transmit electricity compared to transporting coal to far-off locations. The government has also urged power generators to import coal for blending up to 10 per cent in order to ensure adequate stock of coal and an uninterrupted supply of power.