<p>India's electricity demand is now expected to rise in the range of 8-10 per cent during FY22, said HDFC Securities.</p>.<p>The brokerage house had earlier predicted a 12 per cent rise in power demand in FY22.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/national/india-requires-18-gw-capacity-addition-to-meet-hydro-purchase-obligation-norms-by-2030-icra-1074108.html" target="_blank">India requires 18 GW capacity addition to meet hydro purchase obligation norms by 2030: Icra</a></strong></p>.<p>Accordingly, the downward revision of demand expectation is largely due to a prolonged winter and disruptions in demand caused by the rising corona cases in January 2022.</p>.<p>Notably, the overall demand has increased by 9.5 per cent on a year-on-year (YoY) basis in the 'YTDFY22' period.</p>.<p>"The proposed Electricity Amendment Bill 2021 is now delayed as the Centre has dropped the DBT on power subsidies from the same, besides dropping the provision of creating a new Electricity Contract Enforcement Authority," HDFC Securities said in a report.</p>.<p>"However, with CCEA approving the Rs 3.03 lakh crore reform-linked package, we can expect improved infrastructure Capex from discoms over the next 3-4 years. This would, in our view, lower 'AT&C' losses, nullify the 'ACS-ARR' gap, and promote private participation in the discom space."</p>.<p>According to the report, the power demand grew by only 2.5 per cent on a year-on-year basis last month due to low temperatures at the onset of peak winter.</p>.<p>"In the MTD (month-to-date) Jan-22 period as well, demand growth stood at 1.5 per cent YoY, mainly due to a partial lockdown imposed across states due to rising Covid cases," the report said.</p>.<p>"Lower power demand and improved coal supply led to a '3x' increase in coal stocks across stations compared to the critical level of Oct-21."</p>.<p>As per the report, coal dispatches to the power sector surged by 41.5 per cent YoY to 63.3 MT in Dec-21.</p>.<p>"The base deficit rose marginally to 0.4 per cent in Dec-21 while peak deficit fell to 0.1 per cent vs 0.6 per cent MoM, with the merchant rate at INR3.2 per unit."</p>.<p>In addition, it cited that as of January 2022, discoms' outstanding dues have risen to Rs 1.066 lakh crore</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>India's electricity demand is now expected to rise in the range of 8-10 per cent during FY22, said HDFC Securities.</p>.<p>The brokerage house had earlier predicted a 12 per cent rise in power demand in FY22.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/national/india-requires-18-gw-capacity-addition-to-meet-hydro-purchase-obligation-norms-by-2030-icra-1074108.html" target="_blank">India requires 18 GW capacity addition to meet hydro purchase obligation norms by 2030: Icra</a></strong></p>.<p>Accordingly, the downward revision of demand expectation is largely due to a prolonged winter and disruptions in demand caused by the rising corona cases in January 2022.</p>.<p>Notably, the overall demand has increased by 9.5 per cent on a year-on-year (YoY) basis in the 'YTDFY22' period.</p>.<p>"The proposed Electricity Amendment Bill 2021 is now delayed as the Centre has dropped the DBT on power subsidies from the same, besides dropping the provision of creating a new Electricity Contract Enforcement Authority," HDFC Securities said in a report.</p>.<p>"However, with CCEA approving the Rs 3.03 lakh crore reform-linked package, we can expect improved infrastructure Capex from discoms over the next 3-4 years. This would, in our view, lower 'AT&C' losses, nullify the 'ACS-ARR' gap, and promote private participation in the discom space."</p>.<p>According to the report, the power demand grew by only 2.5 per cent on a year-on-year basis last month due to low temperatures at the onset of peak winter.</p>.<p>"In the MTD (month-to-date) Jan-22 period as well, demand growth stood at 1.5 per cent YoY, mainly due to a partial lockdown imposed across states due to rising Covid cases," the report said.</p>.<p>"Lower power demand and improved coal supply led to a '3x' increase in coal stocks across stations compared to the critical level of Oct-21."</p>.<p>As per the report, coal dispatches to the power sector surged by 41.5 per cent YoY to 63.3 MT in Dec-21.</p>.<p>"The base deficit rose marginally to 0.4 per cent in Dec-21 while peak deficit fell to 0.1 per cent vs 0.6 per cent MoM, with the merchant rate at INR3.2 per unit."</p>.<p>In addition, it cited that as of January 2022, discoms' outstanding dues have risen to Rs 1.066 lakh crore</p>.<p><strong>Watch the latest DH Videos here:</strong></p>