Growth in power supply exceeds demand, not need: Fitch Ratings

Fitch attributes the low pick-up in demand to the inability of financially stressed companies

The coal-based power generation capacity has increased by 2.1 points. But Fitch Ratings has observed in its latest report that though the supply exceeds demand as of now, it would not meet the overall power needs.

“Fitch Ratings believes that India could actually produce a power surplus in the financial year to end March 2018 (FY18), with an energy deficit of just 0.6 per cent in the first three months of FY18 – a period of usually high seasonal electricity demand. However, in reality, sporadic outages continue to plague the country. At the same time, about 24 per cent of households