Business Today

The Bright Side

India's conventional power sector is gaining from rise in demand, but a host of issues, especially financial health of discoms, remain a cause for concern.

The dark clouds over India's conventional energy sector, especially coal based plants, are showing signs of dispersing as demand improves and the government moves in to get stalled projects off the ground. However, several issues such as coal availability and health of distribution companies remain a big concern, say experts.

The government says power generation grew to 1,212.13 billion units in 2017/18 from 1,160.14 billion units in 2016/17, a growth rate of 3.95 per cent. For conventional energy, the generation target for 2018/19 was 1,265 billion units, of which 749.173 billion units were produced up to October 2018, a growth rate of 4.91 per cent over the year ago period, according to the Central Electricity Authority or CEA.

Coal production rose 10.4 per cent to 370.3 million tonnes in the April October period and helped a bit in easing the acute shortage being faced by most producers that run plants on domestic coal. Peak power demand rose 8.5 per cent in the first six months of the year and the gap

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