Vedanta Power Stays Resilient Amid Global Tensions, Thanks to Domestic Coal: CEO Ahuja

At a time when global conflicts are disrupting energy markets, Vedanta Limited’s power business has managed to remain relatively stable, largely due to its reliance on domestic coal. Speaking at the Bharat Electricity Summit 2026 in New Delhi, CEO Rajinder Singh Ahuja highlighted how sourcing coal within India has helped shield operations from global geopolitical uncertainties, especially those arising from tensions in the Middle East.

Ahuja explained that most of the company’s plants run on Indian coal, ensuring steady fuel supply and more predictable pricing. However, he acknowledged that certain facilities, like the Meenakshi plant in Andhra Pradesh—which was originally designed to use imported coal—have felt the impact of rising global coal prices.

To manage this challenge, the company has adjusted its strategy by increasing the use of domestic coal at the plant to around 80 percent. This shift has helped maintain operations while keeping costs under control. Ahuja described the situation as both a challenge and an opportunity to build more sustainable operations.

At the same time, rising crude oil prices are adding pressure. The cost of Light Diesel Oil (LDO), used during plant start-ups, has surged significantly, increasing operational expenses. Despite this, Ahuja noted that Vedanta’s overall dependence on domestic coal continues to act as a buffer against global market volatility.

Looking ahead, the company is preparing for growth, with plans to expand its power business—expected to be demerged into a separate entity—aiming to become one of the top players in India’s energy sector. Ahuja also called for a more supportive policy environment, including improved ease of doing business, timely payments from government buyers, and practical implementation of regulations like biomass co-firing.

Despite current challenges, Vedanta remains optimistic about the future, driven by rising electricity demand and long-term opportunities in India’s power sector.

News source: Information for this article was gathered from a variety of reliable news outlets.