India's power utilities will likely boost coal imports this year to cope with surges in demand, made worse over the past year by extreme temperatures, and with freight bottlenecks that are disrupting domestic coal supplies, analysts and officials said.
A steady rise in industrial electricity use in recent years has left utilities in India, one of the world's fastest growing major economies and the second-largest coal consumer and importer, with limited leeway to confront extraordinary demand or hiccups in supply.
But stocks are still far below federal guidelines that recommend at least 24 days' supply as a buffer against the sort of power outages India suffered last year and the year before. Coal imports by Indian utilities more than doubled to 42 million tonnes during the first eight months of this fiscal year from April, compared with the year-ago period, despite an 11.9% increase in domestic coal supplies to utilities.
India's coal inventories were depleted rapidly in recent years, which government officials have cited when advocating for imports.
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