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BUSINESS & TRADE MARCH 27, 2026 | The Indian Eye 34

Holding the Line: How India Is Managing

an Energy Crisis Amid the Iran War

As geopolitical tensions disrupt global fuel markets, India leans on coal, diversifies supply chains,

and accelerates energy transition—while walking a tightrope between stability and vulnerability.

OUR BUREAU connections… can help facilitate the
flow of clean energy across borders,”
New Delhi / Mumbai / Dubai
he said.
s the conflict involving Iran India already exports power to
continues to roil West Asia, Nepal, Bangladesh, and Bhutan, and
Aenergy markets have emerged expanding this network could provide
as one of the first and most visible both resilience and strategic depth.
casualties. For India—the world’s With peak demand expected to rise
third-largest energy consumer—the beyond the current 250 gigawatts—
crisis has triggered a multi-layered and possibly reaching 270 GW—such
response aimed at insulating its econ- interconnections may prove vital in
omy from external shocks while en- balancing supply fluctuations.
suring domestic stability. Yet, the crisis has also exposed
At the heart of India’s strategy structural challenges. India remains
lies a familiar but often debated pil- heavily dependent on imported oil
lar: coal. Even as the country pushes and gas, making it vulnerable to geo-
aggressively toward renewable ener- political disruptions. The Iran con-
gy, coal has once again assumed the flict has reinforced the risks associ-
role of a strategic buffer. According ated with concentrated supply chains
to the Ministry of Coal, it remains and volatile maritime routes.
“central to providing reliable base- In response, the government is
load power,” particularly for core accelerating its push toward renew-
sectors like steel and cement that un- ables and storage. While non-fossil
derpin industrial growth. Food seller cooks using coal-fired ovens amid a shortage of commercial LPG cylinders energy sources are expanding rapidly,
linked to disruptions in global energy supplies following the ongoing U.S.–Iran conflict, Khattar acknowledged that “conven-
The numbers reflect this em- in Kolkata on Thursday (ANI Photo) tional energy remains necessary to
meet rising demand.” India is target-
phasis. Coal stockpiles have ing 100 GW of energy storage capaci-
connections in just three days, and
risen significantly over the past domestic supply can meet rising re- 1.25 lakh new connections have been ty by 2035, combining battery systems
with pumped hydro solutions to sta-
quirements.
year, with Coal India Limited in- Parallel to this, the government added across categories in two weeks. bilize the grid.
creasing pithead reserves from has moved swiftly to contain anxi- At the same time, enforcement The broader picture is one of
ety around household fuel supplies. measures have been tightened. Con- calibrated adaptation rather than
106.78 million tonnes in April Amid fears of disruption, the Minis- trol rooms have been set up across dramatic transformation. India is not
2025 to about 125.54 million try of Petroleum and Natural Gas has most states, and authorities have abandoning fossil fuels overnight, nor
is it immune to global shocks. Instead,
sought to reassure consumers that
acted against hoarding and black
tonnes by mid-March 2026. essential services remain intact. “No marketing, with raids and arrests re- it is deploying a layered strategy:
LPG distributor is facing a dry-out ported. Sharma’s appeal to consum- strengthening domestic production,
Additional reserves across mines, situation,” said Sujata Sharma, Joint ers—“there is no need to visit gas stabilizing supply chains, managing
transit systems, and ports have fur- Secretary at the ministry, adding that agencies unnecessarily”—reflects public perception, and investing in
ther strengthened supply visibility. “LPG supplies and cylinder deliver- the government’s attempt to manage long-term alternatives.
Thermal power plants alone hold ies… are continuing as usual.” both supply and perception. The Iran war has, in effect,
over 53 million tonnes—enough for This messaging is crucial in pre- Beyond immediate crisis man- served as a stress test. So far, India’s
nearly 23 days of consumption at cur- venting panic-driven demand spikes. agement, India is also looking out- response suggests a system that is un-
rent levels. While initial disruptions affected ward. Energy diversification and der pressure but not in crisis—resil-
This stockpiling is not incidental commercial LPG supply chains, al- regional cooperation are gaining ient, but not without vulnerabilities.
but part of a broader supply-side strat- locations have since been restored renewed urgency. Speaking at the Much will depend on how long the
egy. The government has ramped up across states. The Centre has gone Bharat Electricity Summit 2026, conflict endures. A prolonged disrup-
e-auctions and logistics coordination, further, proposing a 10 percent in- Power Minister Manohar Lal Khat- tion could strain even the most care-
particularly rail movement, to ensure crease in commercial LPG availabil- tar highlighted plans for cross-border fully built buffers.
that coal reaches consumers without ity and pushing for expanded piped electricity trade, including potential For now, India appears to be
disruption. Officials have also urged natural gas (PNG) networks. The re- grid connectivity with Sri Lanka un- holding the line—balancing immedi-
states to project additional demand sult has been a measurable shift: over der the “One Sun, One Grid, One acy with foresight in an increasingly
in advance, signaling confidence that 5,600 households have moved to PNG World” initiative. “Regional inter- uncertain energy landscape.

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