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India power crunch raises concern about aluminum production

Inflation fears cast shadow over economy recovering from COVID

Over 100 of India's 135 thermal plants do not have enough coal to last more than a week.   © EPA/Jiji

NEW DELHI -- India finds itself in the midst of a power crisis similar to the one darkening China after coal inventories have fallen to just a four-day supply. A shortage of coal is increasing costs across India's manufacturing sector, prompting concern it could quickly feed through to a rise in inflation.

Coal accounts for about 70% of electricity generation in Asia's third-largest economy. Of 135 thermal plants in the country, 107 do not have enough coal to last more than a week, while 17 have already used up their supply and 21 have only one day left, according to the country's Central Electricity Authority data.

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