Industry

Power generation slips

In April-November 2015, power production increased only 4.55%, compared with 10.73% in the year-ago period. Photo: Bloomberg

Power generation in November was flat, compared with a year ago. In part, this was due to the base effect. Electricity production growth spiked to 10% in November 2014 and the overall figures show the same trend. In April-November 2015, power production increased only 4.55%, compared with 10.73% in the year-ago period.

This comes at a time when gross domestic product growth is accelerating and shows unfulfilled demand on the ground, leading to idle plants and unused capacities.

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“Our outlook for the Indian power sector remains negative because the industry faces persistent challenges, mainly resulting from high, albeit moderating, fuel supply risk, cost over-runs at some plants operated by independent power producers (IPPs), and the limited capacity to pay on the part of financially weak distribution utilities,” said Moody’s in its 2016 outlook report.

[“source -livemint”]

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