How the economic slowdown has dented India’s power sector

Power Minister RK Singh, in a recent event said that power distribution companies in the country suffered losses close to Rs 27,000 crore in the previous financial year ending March 2019.

At least three key indicators of the health of India’s power sector – demand, supply or generation and capacity utilization of power plants — are painting a worrisome picture fuelled by the broader ongoing economic slowdown, a prolonged monsoon season and the continued deterioration in the health of discoms.

The country’s peak demand for power, a proxy for industrial activity, stood at 183,804 Mw in the first seven months of the current financial year (2019-20), growing at a dismal 3.83 per cent, lowest in the period since financial year 2017-2018. In November, too, peak power demand fell 4 per cent to 155,928 MegaWatt (MW) as compared to the same month last year. Read More

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