Published on 11/09/2017 8:56:15 AM | Source: Dion Global Solutions Ltd

India expected to produce excess power this fiscal: Fitch

Posted in Industry News | #India #Expert Views #Industry #Power Sector #Fiscal Deficit #Fitch Rating


According to the latest report by Fitch Ratings, subdued demand growth, consistent capacity additions and better networks may result in India producing surplus power in the current fiscal, although sporadic outages continue and 24 per cent households are yet to be electrified.

Commenting on the issue, a Fitch rating official told the media, “India could actually produce a power surplus in this fiscal, with an energy deficit of just 0.6 per cent in the first quarter ended March, which is a period of high seasonal electricity demand.” "However, in reality, sporadic outages continue to plague the country. At the same time, about 24 per cent of households are yet to be electrified in India.

The inability of hugely indebted power distribution companies (discoms) to purchase power, along with the absence of adequate transmission network coverage, exerts significant pressure on India's thermal power utilisation,” he added. As per reports, the cost-revenue gap remains at Re 0.42 per kilowatt hour (kWh) along with aggregate technical and commercial (AT&C) losses of 20.6 per cent overall.