Coal supply shortage may further trip industrial growth

New Delhi : An examination of three broad categories in the otherwise dismal two-year low industrial growth of 1.9 per cent in September will show one silver lining: electricity. But, crucially, that month also saw a 17 per cent decline in the contracting coal output. Now, that shows a potential to dampen the growth of this crucial sector in the coming months, according to analysts.

However, National Thermal Power Corporation (NTPC) maintains it does not see any deficit in coal supply. For, the country’s largest company in the electricity sector has its domestic and imported requirements tied up for a year.

Anaylsts, on the other hand, caution that if domestic coal supplies do not improve significantly, the impact may be felt in the form of forward linkage in electricity and manufacturing in the coming months.