Telecom Sector Faces Disruption Risks Due to Diesel Shortages and Power Outages
Diesel supply curbs, weak grid power spark telecom disruption fears across states
Moneycontrol
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Telecom operators in India are facing potential disruptions due to diesel supply restrictions and unreliable grid power. States like Uttar Pradesh and Bihar are particularly affected, prompting industry leaders to urge the government for reliable power supply and intervention on fuel availability to maintain operations.
- 01Telecom tower companies consume approximately 100 crore litres of diesel annually for backup power.
- 02Recent diesel price hikes, including an increase of ₹7.5 per litre, could add ₹750 crore to operational costs annually for the sector.
- 03The Electricity (Rights of Consumers) Rules, 2020 mandate 24x7 power supply for critical infrastructure, which is currently not being met.
- 04Industry representatives are seeking urgent government intervention to ensure uninterrupted diesel supply and power availability.
- 05Vodafone Idea and Bharti Airtel are actively reducing diesel reliance by transitioning to high-capacity batteries and renewable energy sources.
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The telecom sector in India is under threat from diesel supply restrictions and unreliable grid power, particularly in states like Uttar Pradesh, Bihar, and Odisha. Telecom operators and tower companies are increasingly dependent on diesel generators due to frequent power outages, leading to rising operational costs. Recent discussions with the Department of Telecommunications (DoT) highlighted these challenges, as industry leaders reported that diesel shortages and rising prices are significantly impacting their operations. Diesel prices have surged to ₹95.20 per litre in Delhi, prompting concerns over the financial burden on telecom infrastructure providers. The Digital Infrastructure Providers Association (DIPA) has called for urgent government action to ensure reliable power supply and diesel availability, citing the Electricity (Rights of Consumers) Rules, 2020, which require continuous power for critical services. In response, the DoT is facilitating state-level interventions to address fuel supply issues. Meanwhile, companies like Vodafone Idea and Bharti Airtel are shifting towards renewable energy solutions to mitigate their dependence on diesel.
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Telecom operators may face service disruptions due to diesel shortages and unreliable power, affecting connectivity for consumers.
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