Indian Power Firms Quadruple Gas Purchases For Night Cooling

04 Jun 2026 CW Team

Large swathes of the country have experienced blistering heat waves that pushed peak electricity demand to new highs both by day and by night. Utilities turned to gas-fired capacity to help meet demand during hot nights, but international supply pressures following the war in Iran pushed up prices and complicated procurement. Data from the Grid Controller of India indicated supply shortfalls of as much as five GW during peak night-time hours.

Natural gas still accounts for just two per cent of India’s electricity mix despite the increased purchases. The country has about 20 GW of gas-fired capacity, which is mainly held as a reserve to meet evening demand surges, and less than half of that capacity has been utilised this summer because of shortages. The limited role of gas underlines the system’s reliance on other fuels for base and peak supply.

Officials at the exchange said the entire volume sold to the power sector this season was regasified liquefied natural gas. Companies paid an average Rs 1,769 per million (mn) Btu on the bourse during the April–May period, around 64 per cent higher than a year earlier, adding to the cost pressure on utilities. Market participants therefore face a tighter combination of higher prices and constrained availability as peak night-time demand remains elevated. Policymakers and grid operators will need to balance short-term procurement against longer term capacity and fuel diversity considerations.

Indian power generation companies have quadrupled natural gas purchases from the Indian Gas Exchange over the past two months to meet surging demand for night-time cooling. The Indian Gas Exchange, the country’s largest gas trading platform, sold four point five trillion (tn) British Thermal Units to power firms from one April through 26 May, representing an almost 350 per cent increase from the same period a year earlier. The surge in purchases reflects intensified use of gas-fired plants as temperatures remained high around the clock. Large swathes of the country have experienced blistering heat waves that pushed peak electricity demand to new highs both by day and by night. Utilities turned to gas-fired capacity to help meet demand during hot nights, but international supply pressures following the war in Iran pushed up prices and complicated procurement. Data from the Grid Controller of India indicated supply shortfalls of as much as five GW during peak night-time hours. Natural gas still accounts for just two per cent of India’s electricity mix despite the increased purchases. The country has about 20 GW of gas-fired capacity, which is mainly held as a reserve to meet evening demand surges, and less than half of that capacity has been utilised this summer because of shortages. The limited role of gas underlines the system’s reliance on other fuels for base and peak supply. Officials at the exchange said the entire volume sold to the power sector this season was regasified liquefied natural gas. Companies paid an average Rs 1,769 per million (mn) Btu on the bourse during the April–May period, around 64 per cent higher than a year earlier, adding to the cost pressure on utilities. Market participants therefore face a tighter combination of higher prices and constrained availability as peak night-time demand remains elevated. Policymakers and grid operators will need to balance short-term procurement against longer term capacity and fuel diversity considerations.

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..

Infrastructure Energy

04 Jun 2026

Government to Launch Coal Gasification Urea Policy

The government will unveil a coal gasification based policy for urea production within one month, aiming to promote the use of domestic coal feedstock in synthetic fertiliser manufacture. The move seeks to enhance self reliance in fertiliser supply and to provide an alternative route to natural gas based synthesis. Officials said the policy will set out technical standards, permitting norms and incentives for projects that adopt coal gasification technology. It will aim to attract investments from both public sector undertakings and private manufacturers. The scheme will address logistical and..