In what could be seen as the twin impact of record-breaking temperatures this summer and a possible revival of industrial growth, the electricity generation for April recorded the highest growth in nearly 22 months.
The electricity generated in April stood at 99.4 billion units, up 14.7% (BU) compared to 86.7 (BU) in the same period a year ago. This was preceded by 11.2% growth in generation in March. This compares favourably with rather tepid generation growth of 5.5% for the fiscal year 2016 compared to a year-ago period.
The generation growth was primarily led by coal-based generation that saw a jump of 21% in April. This had a positive impact on plant utilisation as well, which grew by 520 basis points to 67.5% over the last month. However, gas-based generation declined by nearly 8% to 4.2 billion units, possibly due to more availability of cheaper coal-based power. As per the electricity generation target set by the technical arm of the power ministry for FY 17, it is pegged to grow at 6.3% to 1,178 BU from 1,108 BU in the last fiscal.