Energy policy preparedness

Difficulties will not be limited to coal

The ongoing recovery and the medium-term growth potential of the Indian economy could be adversely affected by the unfavourable energy sector outlook. Deficient coal supply is affecting power availability in many states and could hurt industrial production at a crucial juncture. The government has now asked power generators to import coal for blending in order to address the shortage. The present condition has emerged because of a combination of factors. Power production has not kept pace with industrial demand, while delayed rains affected coal production. Although Coal India, which caters to over 80 per cent of coal demand, is increasing