Energy Crisis Deepens In India With 4 Days of Coal Reserves Left

Coal-fired power stations had an average of four days' worth of stock of the fuel at the end of last month, the lowest level in years, and down from 13 days at the start of August. More than half the plants are on alert for outages.

The worsening squeeze on India's coal supply is triggering a power crisis that's threatening to stall the world's fastest-expanding major economy.

Coal-fired power stations had an average of four days' worth of stock of the fuel at the end of last month, the lowest level in years, and down from 13 days at the start of August. More than half the plants are on alert for outages. 

With coal used to produce almost 70% of electricity, spot power rates have surged, while supplies of the fuel are being diverted away from key customers including aluminum smelters and steel mills.

Like China, India is contending with two key challenges: soaring electricity demand as industrial activity rebounds after pandemic curbs were lifted and a slump in local coal output. The country meets around three-quarters of its demand locally, but heavy rains have flooded mines and key transport routes.