Justified : Why India face Power Crises ?


Why India face Power Crises ?

Though India is 2nd Largest Importer, Consumer and Producer of Coal, Still It faces the issues of Power Shortage.


Reasons Why India facing Power Crises ?

India is a country which rely on Coal for it's Majority of Energy Production.
But according to some reports, 54 Coal plants are running exhausted or are on the verge of exhausting.

With increase in population of India, Demand for Energy is too increasing. There has been 17% increase in Energy Consumption in last Year.
And increase in price of Coal has added the problems. This year price of Coal have increased by 40%.

India spends almost $21.1 Billion on just Coal. It is the second largest importer of Coal after China. China is buying coal more vigorously yo meet it's demands. This has a impact on increasing price of coal.

According to Inshorts, Increase in Economic activities and monsoon rains have led to shortages of Energy. Added to this is rise in coal prices have made domestic companies to turn towards domestic coal producers. This may lead in exhausting coal plants too early.
Presently India has 138 coal Producing plants. Out if which 50 have left stock of just 4-10 days, 72 have left stock of less than 3 days and Remaining 13 have left stock of more than 10 days.

Dependency on Electricity

Industries use about 47% of Total Energy produced in India.
Domestic use is about 24.0%.
Agriculture sector in India uses 17.7% of Total Electricity produced.
Commercial use - 8%
Traction and Railway - 1.5%
Other - 6.1%
Source - MOSPI

What are the Likely Impacts of Energy Crises ?

Shortages of Power will obviously lead to increase in price for it's consumers.

Manufacturing sectors like cement production, steel production will be heavily be impacted with this Power Crises. To meet up this expenses Companies will higher the price amount. Which will have inflatory burden on Citizens.

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