With the unlock phase at full swing and with economic activities gathering momentum again, the power slump has narrowed down in August, and consumption has reached nearly the same levels as that in the same month a year ago. The resurgence in the power usage comes after a drastic drop in consumption in the lockdown months as economic activities had come to a grinding halt due to nationwide lockdown. Earlier this week, India reported a 23.9% on-year fall in fiscal first quarter GDP (April-June). The increase in power consumption, along with other demand and consumption indicators, may show a potential economic revival in the ongoing Q2 FY 2020-21.
The slump in overall power consumption has narrowed to just 0.85% in August at 110.57 billion units (BU) amid a considerable rise in economic activities, raising hopes that power consumption will surpass normal level in September. Power consumption in August last year was at 111.52 BU, as per the data by the power ministry.
