India's energy sector faces a critical efficiency challenge that demands coordinated policy action. Coal supplies account for over half of India's primary energy mix, yet the sector suffers from significant inefficiencies that inflate electricity costs. Coal comprises more than 70 percent of thermal power generation expenses, and these costs directly impact consumer tariffs. The core issues are clear: Indian Railways overcharges coal transportation to subsidize passenger fares, while coal suppliers fail to adequately process high-ash domestic coal before dispatch. This waste increases freight expenses and reduces thermal plant efficiency. Solutions exist within reach. Coal companies must establish washeries to remove ash content before shipment, reducing downstream maintenance costs.
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