Power sector faces heavy losses, liquidity crunch
NEW DELHI: The sharp fall in electricity demand during the lockdown is likely to deliver a major blow to India’s power sector, especially its large thermal power plants. Industry representatives have warned that the deep decline in demand will result in net revenue losses of up to Rs 40,000 crore for distribution companies (discoms), and in the entire sector facing liquidity crunch to the tune of Rs 50,000 crore.
According to data from government entities, peak power demand has tanked by over 25 per cent since the beginning of the lockdown. Power ministry data showed that total power consumption in the country had slipped to a little over 125 GW in the beginning of April compared to over 163 GW before the nationwide lockdown. Data from the Power System Operation Corporation Limited (POSOCO) corresponds to this trend, falling to 18 billion units during the week from March 23-April 12, from 18 billion units from March 9-15.
