During the peak power demand season of the summer, four states – Uttar Pradesh, Maharashtra, Tamil Nadu, and Rajasthan – defaulted on payments to Coal India (CIL) for their state-owned power units. CIL in turn regulated the coal supply to these states. Delayed monsoons, and the opening up of the economy after the second wave of Covid-19 led to an increase in power demand.

       As a result, peak power demand touched a record high of 200 Gw in August. By then, however, CIL had reduced coal production during the rainy months. The mismatch snowballed to a crisis that has led to a ...