Amid signs of recovery in the Indian economy, which was hit hard due to coronavirus pandemic, a new record was created on Friday when the power demand touched 1,87,300 MW breaching the previous record of 1,85,820 MW on January 20.
Union minister of power RK Singh said, “This again underscores the growing strength of Indian economy. The rapid growth in demand also underscores the benefits of empowering the poor which the government did under Saubhagya.’’ India’s peak demand in January 2020 stood at 1,70,970 MW.
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) aimed to provide electricity connections to all remaining unelectrified households in rural as well as urban areas.
“The surging demand also shows the success of Saubhagya under which we gave all homes including the poor and the underprivileged access to power. This is a matter of satisfaction for us in the Ministry of Power,’’ said Singh.
He added the demand and supply of power in January (till January 19) has grown by 8% as compared to the corresponding period last year.
“The surging demand for power is a certain indicator our economy is getting back on track,’’ he noted.
India’s power demand had started falling from April last year following disruption in economic activities due to Covid-19 crisis. It had affected the power demand from April to August last year. However, the demand started picking up from September onwards.
The surge in power demand coincides with the Reserve Bank of India’s observation the revival in the economy will exceed most forecasts which will drive the economy towards a “glorious summer”, throwing open the space for greater policy support. India’s economic recovery is strengthening and policymakers may soon have more room for steps to support the revival, an article published in the RBI’s January bulletin said.