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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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