Reporting from Mumbai, Reuters notes an increase in India’s demand for coal-based power of 7.3% this fiscal year – an all-time high. According to a government statement, demand peaked mid-June in response to a prolonged heatwave in the northwest and central parts of the country when more than twice the usual number of heatwave days was recorded.

In the same statement, the government reported that coal production stood at 207.48 million tonnes as of June 16, a growth of 9.27% from the same period last year. The government also confirmed that the Ministry of Coal was ready to ramp up coal production and transportation to meet the surge in electricity demand.

In 2023, more than 75% of India’s power generation was from coal. Gas-fired plants have accounted for a mere 2% in recent years. This reflects the high cost of gas relative to coal.