India is considering maintaining strategic reserves of natural gas and imported coal to address future supply shocks, a senior power ministry official said on Thursday, as the energy hungry nation battles a crippling coal shortage.
A surge in power demand combined with a fall in imports due to high global coal prices have lead to supply disruptions and power cuts lasting up to 14 hours a day, despite record supplies from state-run Coal India, the world’s biggest coal miner.
Alok Kumar, India’s power secretary, said countries increasingly meet their own needs first when there is a supply crunch, citing the example of Russia curtailing supplies to European nations because they wanted more gas locally.
“So let us start thinking and discussing about keeping a strategic reserve of gas and imported coal, so that economies are able to tide over these supply shocks for about a month or so,” Kumar said at the South Asia Power Summit organised by the Confederation of Indian Industry.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.