India is likely to face more power cuts this year as utilities’ coal inventories are at the lowest pre-summer levels in at least nine years and electricity demand is expected to rise at the fastest pace in at least 38 years, officials and analysts say.
Power cuts could stifle industrial activity in Asia’s third largest economy, just when economic activity was starting to recover after months of COVID-related lockdowns.
The shortage of electricity as a percentage of demand has shot up to 1.4% over the last week, a Reuters analysis of government data showed, higher than the 1% deficit in October, when India last faced a serious coal shortage, and the 0.5% shortfall in March.
