Country's power demand will increase by 7% in the financial year 2023–24: Fitch

18 Nov 2023

As per the Fitch Ratings, demand from the country's power sector is expected to grow by about 7% in fiscal year 2023–24 amid strong industrial activity. The rating agency said that it expects strong power demand would keep the load factors high of thermal power plants. Although coal import volumes are expected to remain modest, higher local supply will meet a large portion of the increased demand. It said that the coal inventories at power plants have been declining since August 2023, when monthly power demand hit a record high. The government aims to boost local coal production and allow power plants to blend a higher proportion of imported coal in the fuel mix to ensure adequate coal reserves. The Union Coal Ministry said it plans to produce 1,404 million metric tons (MT) of coal by 2027 and 1,577 MT of coal by 2030, up from the current production level of about 1,000 MT per year.