Lower industrial consumption arrests power demand revival in July

Power demand in states like Gujarat, Maharashtra, Andhra Pradesh and Tamil Nadu — where industrial and commercial consumers comprise more than 40% of electricity users — was lower by 14%, 9%, 11% and 15%, respectively in July, year-on-year. Electricity consumption figures in these states were even lower than June levels, signaling that the re-imposition of lockdown curbs in key industrial areas might have put the brakes on an incipient revival process in many industries, including the manufacturing sector.

Overall power consumption rose marginally in July from previous month, thanks to the lockdown relaxations and increased household consumption due to summer heat. The 113.5 billion units (BUs) of electricity supplied in the month was only 2.6% lower year-on-year (y-o-y), but 8% higher than June. Power demand in the month would have been higher had lower industrial usage not offset the increased agricultural consumption in the sowing season and higher residential requirement with the advent of summe

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