Economic slowdown, falling industrial demand hurting power consumption

Gujarat saw 1.1% fall in demand, Maharashtra 2.63% in April-September period

Economic slowdown, coupled with falling industrial electricity demand and deteriorating payment capability of power distribution companies (discoms), is hurting power consumption as well as returns of power generating units. Major industrial states such as Maharashtra, Gujarat, Karnataka, Andhra Pradesh, and Madhya Pradesh have witnessed a fall in power demand. 

At national level, all-India power demand growth has hovered around a sub-optimal 2-4 per cent annually in the past five years. Aberrations were FY19, when demand rose by 7.9 per cent. In FY15, it grew by 8.8 per cent. India is aiming double-digit GDP and power demand growth. 

“Slowdown has been