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The Financial Ways
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Energy

India Scrambles to Build Coal Reserves Before Summer Heat

With current stockpiles sufficient for only six days of power generation, Indian authorities are rushing to triple coal inventories to 55 million tons by March 31. This aggressive push aims to avert a repeat of last year's critical shortages that left half of the nation's coal-fired plants running on empty.

India Scrambles to Build Coal Reserves Before Summer Heat

The joint initiative involves the coal, power, and railway ministries working in tandem to overcome significant logistical hurdles. Domestic supply chains recently suffered under monsoon-related disruptions, which throttled the movement of fuel from coal-rich states to generation sites. To rectify these bottlenecks, Indian Railways increased carriage capacity by 20% last month and is under government mandate to squeeze out an additional 7% boost before the fiscal year concludes.

Energy demand remains relentless, with the International Energy Agency projecting a 4.2% rise in total coal consumption to 1.353 billion tons this year. While New Delhi continues to expand solar infrastructure, the inherent variability of renewables fails to provide the consistent baseload power required by the world's second-most populous nation. As global oil and gas markets tighten due to disruptions in the Strait of Hormuz, the reliance on domestic coal reserves has become the primary safeguard against widespread blackouts during the upcoming summer peak.

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