A shortage of sulphur due to the West Asia war and a Hormuz blockade is threatening to slow boiler manufacturing at Bharat Heavy Electricals Ltd (Bhel), according to two people aware of the development, at a time when its boiler order book remains full amid a revival in thermal power.
Sulphur, a yellow element, is used in producing industrial gases such as acetylene and hydrogen and welding consumables like electrodes, fluxes, and filler wires that support high-temperature fabrication of boiler components.
Now, a shortage of this commodity has forced the power equipment maker to dip into its “critical stock” for “emergency needs”, said the first of the two persons cited above, both of whom spoke on the condition of anonymity.
India imports about 40% of its annual sulphur demand of about 4 million tonnes. More than three-quarters of this comes from West Asian countries such as the UAE, Qatar, Kuwait, and Oman, according to latest available World Bank Data for 2023.
sulphur is widely used to produce sulphuric acid for fertilizers, and is also a key input in chemicals, textiles manufacturing, and electric vehicle batteries.
The state-run engineering company received orders worth ₹76,930 crore from thermal power plants in FY25, its latest annual report said. The order momentum is expected to continue, with the government planning to set up 80GW of thermal power capacity by 2032, the FY25 annual report said.
Power sector projects, where boilers are used extensively, make up about 70% of Bhel’s order book.
Queries emailed to Bhel and the ministry of heavy industries, its nodal ministry, on 27 March remained unanswered.
Some experts said a sulphur shortage has rattled supply chains globally, since manufacturers in various industries across the globe are dependent on imports from West Asia.
Sulphur, which is also used in small amounts in lithium-ion batteries, is made in refineries by converting sulphur compounds in crude oil into hydrogen sulfide.
“A sulphur shortage is not just an India problem,” said Prashant Vashisht, senior vice-president and co-group head at ratings agency Icra, “Because West Asia is a source for nations across the globe,” he said.
Vashisht added that India’s domestic sulphur production had fallen in the past two years, as the country increased refining of Russian crude oil, which has more sulfur content than West Asian oil.
Vashisht also said India could look at diversifying sources of sulphur in case the conflict in West Asia drags on.
Some domain experts said there were ways to overcome delays in power projects. “Such risks are always present in managing thermal power projects. A disruption for a week may not spoil the schedule for a full order book, since there are always methods to compensate for delays,” said former power secretary Alok Kumar.
India's automobile component makers are also battling a sulphur shortage, according to industry stakeholders. “There is emerging tightness in sulphur supplies due to disruptions in West Asia, which is impacting availability of sulphuric acid, a key industrial input used across metal processing, including copper. This is contributing to cost pressures and supply constraints across segments of the auto component value chain,” said Vinnie Mehta, director general of the Automotive Components Manufacturers Association of India (Acma).
Meanwhile, EV battery makers said sulphur supply disruptions could begin to impact them within 1–2 months, as the US-Iran war drives up costs and delays shipments of imported battery components.
“India’s battery imports, primarily cells and packs, have not yet seen noticeable disruptions due to sulphur supply concerns. However, indirect dependencies for battery materials will be impacted by higher costs and higher lead times, likely to be felt within 1-2 months as current stockpiles get depleted,” said a spokesperson for the India Energy Storage Alliance, an industry lobby group which has battery makers such as Exide Industries and Amara Raja Energy & Mobility as members.