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Home / Industry / Energy /  India’s electricity demand touches record high on Saturday

New Delhi: India’s electricity demand recorded a new high of 189.6 gigawatts (GW) on Saturday, thereby surpassing the previous all-time high electricity demand of 188.4 GW, that was recorded on 28 January.

India’ power demand has been registering record highs in January and had touched 187.3 GW on 22 January and 185.82 GW on 20 January respectively. India had recorded a peak demand of 168.74GW in FY19. The country has an installed power generation capacity of 373.43GW.

This assumes importance as energy consumption, especially that of electricity and refinery products is usually linked to overall demand in the economy. Also, this comes in the backdrop of other economic indicators such as refineries, GST collections, and railway freight witnessing a revival.

The record-high power demand comes before finance minister Nirmala Sitharaman rises to present her third union budget on Monday, and in the backdrop of Economic Survey presented on Friday stating that Indian economy will expand 11% in the year starting 1 April after shrinking 7.7% this fiscal.

“Electricity sector retained its momentum with power consumption registering positive YoY growth since September 2020," the Survey said and added, “Electricity and Construction sectors are also estimated to register V-shaped recovery with growth of 7.1 per cent and 4.4 per cent respectively in the second half."

The Indian economy has been severely hit by the coronavirus pandemic. The country’ peak electricity demand came down with commercial and industrial power demand taking a hit after many factories shut down. However, domestic consumption, which generates comparatively lower tariffs, went up. Of India’s total electricity demand load pattern, industrial and agricultural consumption accounts for 41.16% and 17.69%, respectively. Commercial electricity consumption accounts for 8.24% of demand.

The survey also said that in FY22, India’s real gross domestic product (GDP) in absolute terms would be 2.4% above what it was in FY20. The Reserve Bank of India in its January bulletin had also stated a strengthening economic recovery and comparing the revival to a “phoenix-like" rise.

The International Monetary Fund (IMF) has also upgraded its gross domestic product (GDP) projection for India to a contraction of 8% in FY21 from an earlier estimate of minus 10.3%, saying there are encouraging signs of economic recovery in high-frequency indicators.

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