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India’s Power demand rises 3.7 per cent in January over December

   February 12, 2020        421        Sarita C Singh

New Delhi– India’s electricity demand grew 3.7 per cent in January for the first time after five months of decline. The power demand for electricity stood at 1,05,289-mw in January 2020 against 1,01,570-mw in December 2019.

The demand was 3.5 per cent higher than 1,01,713-mw registered in January 2018, data available with the Central Electricity Authority said.

Power demand for cumulative period of April-January of current financial year was 10.7 per cent higher than registered in cumulative period last fiscal. The rise in demand between December and January came mainly from northern and southern states, while the western region registered a dip in energy consumption. Demand contracted between December and January in Gujarat and Maharashtra, the two most industrialised states in the country, while it was high in most other states.

Peak-hour demand of electricity was however low by 0.4 per cent in January 2020 at 1,71,655-mw than 1,72,363-mw in December 2019. Peak hour demand rose by 4.7 per cent year-on-year against 1,64,018-mw in January 2019 was

Electricity demand is seen as an important indicator of economic health in the country though the Economic Survey tabled on January 31 hinted that is not a reliable indicator.

“Given that these indicators do not exhibit a stable relationship with GDP growth even before 2011, they are poorly equipped to diagnose mis-estimation post 2011,” it had said.

India’s power demand grew at slowest pace of 1.1 per cent in 2019. In December, the country’s power demand fell 0.5 per cent from the year-earlier period, representing the fifth straight month of decline, compared with a 4.3 per cent fall in November. The fall in October was the most in October at 13 per cent led by a sharp reduction in Gujarat and Maharashtra.

The Economic Times

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