Peak power demand to bounce back in FY21 depending on industrial activity

While growth in manufacturing hinges on expansion of industrial base, growth in domestic consumption is likely to continue on urbanization and irrigation drive

Peak power demand is slated to bounce back in FY21, depending on Index of Industrial Production (IIP) and recovery in capital goods.

A report by Axis Capital on the power sector shows that energy demand was lacklustre in FY20 due to subdued economic activity, extended monsoons and low residential demand.

The total per capita power consumption in the country is low due to tepid contributions from manufacturing and residential sectors. It is likely that a large part of this demand is hidden in agricultural load which accounts for 17.7 per cent of the consumption in FY19 as against the global