Decoding the link between coal policy changes and the power crunch in India

Coal supply reforms are medium term, but they have created an immediate surge in demand. The result is a power crisis

Mumbai and load shedding were hyphenated this week, like a bad dream from the nineties. It is unlikely to last long, since the generation of electricity by the power plants has reached 189.5 Gw on April 26, up a massive 9 per cent over the same day last year. 

Yet this should not have taken place, going by the list of reforms in the coal sector that have been rung in, at least for the past two years. That it has, is because of two key reasons. The medium- and long-term policy changes have made it easier to buy coal