Why Power Industries Are Growing In India Despite Economic Slowdown?
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Although power demand in the nation’s industrialized states went down in the April-July quarter, as demand from businesses fell with the broader slowdown in India but states with the majority population increased the graph of electricity demand. The rise happened mostly because bulk requirement from states that happened to add a large number of households to the electricity network for the first time.
Factors that led to the rise in Power Industries
One of the largest states of the country, Uttar Pradesh welcomed various new household power consumers. Due to the increase in numbers of consumers, the demand up streamed to 9%. This gave rise to the supply from the power industries which in turn gave profit to the electricity sector.
Rajasthan saw a demand growth of 11% during the four-month period, data from the government’s Central Electricity Authority show.
According to the Chief Economic Adviser, Finance Ministry, Krishnamurthy Subramaniam “Power demand growth is definitely something we should take note of, “It may indicate there are some green-shoots toward a higher growth rate." said on Friday after GDP data showed an uptick in electricity demand in the April-June quarter.
PM Narendra Modi pledged to electrify every home, a promise that helped in his re-election this year but one that could prove costly for state utilities unless businesses purchase more electricity.
According to the Government’s Petroleum Planning and Analysis Cell, consumers increased their demand to 2.4% grew in April-July quarter. This figure is more than the last year consumption in the same period.
According to the data records, Tamil Nadu and Maharashtra, known as the nation’s hub for making automobiles and ancillaries experienced the rise in demand of electricity to 2.7% and 1.5%. It is recorded to be the slowest rise.
Haryana and Gujarat, these are also the states considered as manufacturing hubs, saw electricity requirement rising at a weaker 2.9% and 5.3% compared with the previous year’s 7.5% and 8.8%, respectively.
Power Minister R K Singh on Wednesday said, “Now, we are at a stage where there is universal access to electricity in India. We have left some houses in Chhattisgarh and some hamlets in Rajasthan and Uttar Pradesh.