China is not the only Asian economy facing coal shortages

Spark Global Limited Reports:

China is not the only Major Asian country facing an energy crisis. India is also teetering on the edge.
At a time when India’s economy is recovering and driving demand for electricity, most coal-fired power plants have very low levels of coal stocks.
Coal accounts for about 70 percent of India’s electricity generation.
Kunal Kundu, India economist at Societe Generale, said a potential power crisis could have a direct impact on India’s nascent economic recovery. Industrial activity, not services, is leading India’s recovery.
As of Oct. 6, 80% of India’s 135 coal-fired power plants had less than eight days of inventory, and more than half of them had less than two or two days of inventory, according to government data.

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By contrast, power plants have only had about 18 days’ worth of coal stocks on average over the past four years, according to Hetal Gandhi, head of research at CRISIL, a ratings firm owned by S&P Global.
“By December, you should see inventory levels rise again to eight to 10 days,” Gandhi told CNBC. “But it’s clear that even by March, it’s not going to get anywhere near 18 days. It will need to be monitored closely over the next six months.”
State-owned Coal India accounts for more than 80 per cent of India’s Coal production. Last month, the company reportedly said it would increase supplies to utilities to address coal shortages at power plants.

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