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India facing a power crisis as coal supplies dwindle
The situation has led to widespread blackouts and rising energy costs

India facing a power crisis as coal supplies dwindle

Oct 12, 2026
05:07 pm

What's the story

India is facing a major power crisis due to dwindling coal supplies and extreme weather conditions. The country's electricity grid has been witnessing an average shortfall of nearly four gigawatts per day in early October, data from the Grid Controller of India shows. This shortfall is enough to power around two million rural households. The situation has led to widespread blackouts and rising energy costs for industries and households alike.

Weather impact

Extreme weather conditions and weak monsoon

The ongoing power crisis is largely due to the weakest monsoon since 2015, which has reduced hydropower output.

The hotter-than-normal weather has also increased demand for air conditioning and farm irrigation.

This has led coal-fired power stations, which provide about two-thirds of India's electricity, to quickly deplete their inventories.

As a result, smaller factories, farmers, and households are facing power cuts due to demand outpacing supply on the grid.

Industrial impact

Power outages in Chhattisgarh

Small steel mills in Chhattisgarh are facing power outages of up to 12 hours a day. This has forced these plants to cut down their output.

Manish Dhuppad, General Secretary at the Chhattisgarh Mini Steel Plant Association, said an "uninterrupted supply of power" is crucial for such industries.

He warned that sudden power cuts can lead to wastage as materials inside furnaces solidify before they can be processed further.

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Climate concerns

Impact of extreme weather on economy

The ongoing power shortages underscore the growing impact of extreme weather on India's economy. The weak monsoon is linked to a record El Nino event.

It also highlights how the country's continued reliance on fossil fuels is hindering its ability to adapt to climate change.

As of October 10, nearly half of India's coal-fired plants had less than a quarter of their required feedstock supplies, according to data from the Power Ministry.

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