CMIE downgrades expected Indian power growth

• 11 years ago (2012-08-07)
• Junior Isles

North America 998

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The Centre for Monitoring Indian Economy (CMIE) has revised down India’s forecasted power generation increase for this fiscal year from 13.2 per cent to a 10.8 per cent increase.

"Power generation forecast for 2012-13 is revised downwards to 10.8 per cent from 13.2 per cent projected earlier. The lower-than-anticipated availability of inputs prompted us to revise generation forecast downwards," the think-tank reported in its monthly review.

The review noted the Indian power sector is facing a raw material crunch, with gas and coal witnessing steep falls in production, and a poor monsoon season further aggravating already low water levels in reservoirs.

CMIE forecasts gas-fired generation to fall by 5.7 per cent and revised its coal and hydro generation growth estimates to 14.8 per cent and 4 per cent, respectively.

"The biggest gas player Reliance Industries has been reporting a steep fall in gas production. This has impacted gas supply to power plants, which prompted us to revise our gas-based generation forecast downwards," CMIE said.

The agency also revised down the forecasted domestic coal production increase to 6.8 per cent for FY13.

"A change in coal production forecast necessitated revision in coal-based generation forecast as 80-85 per cent of coal requirement is met domestically," it said.

With regards to hydro, CMIE said "a downward revision was necessary considering a sharp 10.8 per cent fall in hydro generation during the April-May period”.