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Coal shortage plagues power sector
Dec 22, 2012

One of the biggest roadblocks facing the Indian economy has been the poor state of infrastructure in the country. It is said that lack of proper infrastructure shaves off about 2% of India's GDP growth every year. The power sector, which is the engine for growth in any economy, is facing a myriad of challenges and setbacks in India. As per an article in Livemint, new orders in the power sector stood at Rs 79 bn in the September quarter, down 91% from the corresponding period of the previous year. In fact, this is the lowest since 2005.

Moreover, about 64,000 megawatts (MW) of projects have been stalled. Today's chart of the day shows the major reasons for delay in the 64,000 MW of power projects. It is clear that the biggest problem plaguing the power sector has been shortage of fuel, mainly coal. It is worrying that despite that fact that India has one of the largest coal deposits in the world, coal supply continues to be a big challenge.

Data source: Livemint

This Chart Of The Day was published in The 5 Minute WrapUp - Lessons from Mayan 'End of the World' prophecy

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