Electricity generation in India is expected to grow by 5-6% in FY20, analysts at CARE Ratings said. The country had generated 1,307 billion units (BU) of electricity in FY19, recording an annual growth of 5.3%. “We expect the benefits of improved demand from newly connected households (under the Saubhagya scheme) to kick-in during FY20,” the agency said.
Care Ratings also projected that coal production to grow steadily by 6-7% during the ongoing fiscal. Domestic coal production grew by 7.3% to 739.4 MT in FY19, much faster than the 2.6% growth rate seen in FY18.
The rating agency’s forecast are much lower than that of the Central Electricity Authority (CEA), which expects generation to touch 1,330 BU from the conventional power sources (excluding renewables) in FY20.
