Demand up, but power sector woes to continue

Power sector woes are expected to continue for some time as coal shortage continues, leading to a dip in the generation. Rising demand for electricity and fall in hydropower production due to a dry spell in certain parts of the country is compounding the problem.

Generation companies are struggling to line up uninterrupted coal supply while distribution companies have to resort to power procurement at a higher price or shed load.

Association of Power Producers director general Ashok Khurana said this year the power demand has shown an increase of 6-7%. In states like Maharashtra, Gujarat, Gujarat and Tamil Nadu, the demand has increased significantly due to the ongoing festive season, increased agricultural activity, coupled with a dry spell.

 

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