{
  "id": 13919560,
  "title": "Indian homes, factories hit by hours of blackouts amid more demand for coal",
  "url": "https://urgent.news/2026/10/12/indian-homes-factories-hit-by-hours-of-blackouts-amid-more-demand-for",
  "topic": "world",
  "section": "World",
  "published": "2026-10-12T09:13:22.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/news/asia/south-asia/article/3370592/indian-homes-factories-hit-hours-blackouts-amid-more-demand-coal"
  },
  "original_language": "en",
  "account": "Indian factories and households are grappling with blackouts and soaring energy expenses due to dwindling coal reserves at power plants affecting the nation's electricity supply. The weakest monsoon in over a decade has decreased hydropower generation, while higher-than-average temperatures have increased demand for air conditioning and farm irrigation. Consequently, coal-fired power stations, responsible for roughly two-thirds of India's electricity, are rapidly depleting their reserves. Smaller factories, farmers, and households are experiencing frequent power outages as demand surpasses supply on the grid. Meanwhile, large industrial entities – encompassing metals smelting, chemicals, and paper production – are unable to produce sufficient electricity for their operations due to Coal India favoring deliveries to grid-connected generators. For instance, small steel mills in Chhattisgarh are enduring blackouts lasting 10 to 12 hours daily, compelling plants to curtail output. The power shortage underscores the growing impact of extreme weather on India's economy, attributed to a record El Nino. It also highlights how the country's continued dependence on fossil fuels hinders its capacity to adapt to a changing climate. As of October 10, feedstock supplies at nearly half of India's coal-fired plants had fallen below a quarter of the required levels, according to the power ministry. A late surge in monsoon rainfall in coal-mining regions in eastern India exacerbated the shortages, impeding production and railway transportation of the fuel. In Punjab, a northern state, residents and businesses are enduring extended blackouts. Planning operations and deliveries becomes challenging, and product quality may suffer due to the abrupt cessation and resumption of machinery. Higher energy costs arise from the necessity to switch to costly backup generators during these power cuts. The average electricity shortfall on India's grid has averaged nearly four gigawatts per day in the first 10 days of October, enough to power approximately two million rural households. This shortfall is a direct consequence of the policy favoring grid-connected power stations, which puts companies generating their own coal-fired electricity at a significant disadvantage. They must contend with high prices at Coal India auctions, purchase power at expensive grid rates, and face lengthy waits on rail transport, forcing those with limited financial resources to curtail output. Premiums at Coal India spot sales in September surged to 94 percent over the base price, up from 59 percent in August. Two of Coal India's subsidiaries – Northern Coalfields and South Eastern Coalfields – imposed premiums exceeding 200 percent at auctions last month, as per the miner's data. For those relying on the grid, electricity bills have been steadily rising in most Indian states over recent years, driven by escalating coal prices and the cost of upgrading the national power infrastructure. In India's most populous state, Uttar Pradesh, certain villages in Shamli district are experiencing up to seven hours of daily blackouts, leading many residents to invest in backup systems for lighting and fans. A surge in solar power generation over the past few years has provided enough electricity for Singh to irrigate his fields during daylight hours, although challenges arise after sunset. Despite these adjustments, Singh expresses concern over the escalating cost of electricity.",
  "summary": "Indian factories, smelters and households are being hit by blackouts and rising energy costs as the impact of plunging coal stockpiles at the country’s power stations ripples through the economy. The weakest monsoon since 2015 has curbed hydropower output, while hotter-than-normal weather has buoyed demand for air conditioning and farm irrigation. That has seen coal-fired power stations, which…",
  "key_points": [
    "Blackouts hit Indian homes and factories due to coal reserve depletion.",
    "Monsoon's weakest in a decade reduces hydropower generation.",
    "Coal India prioritizes grid-connected generators over smaller users."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}