The suite of reforms announced by Finance minister Nirmala Sitharaman in the fourth tranche of economic package is unlikely to calm the frayed nerves of the stressed power sector.
A study by CARE Ratings notes that the ailing power sector does not stand to gain from the reforms in the short term, with accumulated coal inventory climbing to 51 million tonnes (as on May 13). The nationwide lockdown imposed to contain the Covid-19 pandemic has sapped power demand. Power demand has tumbled significantly during the lockdown period primarily due to falling demand from commercial and industrial consumers.
In a month since India enforced lockdown to control the spread of Coronavirus, the electricity consumption has plummeted by 19.7 per cent, finds a new data tracker developed by researchers at the Energy Policy Institute at the University of Chicago.
