After two months of decline, power demand logs an increase in October

Power demand is estimated to have risen ~0.4% on-year to ~140 billion units (BUs) in October, after two consecutive months of decline. Over April-October, power demand is estimated to have increased ~4.7% on-year.

Power demand grew in October following the withdrawal of the southwest monsoon (according to the India Meteorological Department), with the country still receiving 3% above-normal rainfall between October 1 and 23. A pick-up in industrial activity as the festival season approaches has supported power demand during the month as well. The Purchasing Managers' Index has risen to 58.6 in October from 58.3 in the previous month, indicating a further expansion in manufacturing growth (demand from commercial and industrial consumers accounts for ~50% of India’s total power demand).

Curtailing a further rise, though, is moderation in construction activity, which is typically low this time of the year. Also, electricity consumption from the agriculture sector decreases as irrigation requirements typically ease post the sowing season.