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For the first time in history, India will not have power deficit situation in FY17

India has, for the first time in history, declared that it will not have a power deficit this year, a situation officials say is an outcome of the current government's initiatives to resolve burning issues like fuel scarcity. The country will have a surplus of 3.1% during peak hours and 1.1% during non¬peak hours during 2016¬17, latest data from the Central Electricity Authority shows.

This is the first time that the country has declared a year of no shortage though many regions have had power surplus for shorter periods. In 2015¬16, the peak hour deficit stood at ¬3.2% while non¬peak hour deficit was at ¬2.1%. The deficit was as high as 13% about a decade ago.

The data, based on gap between demand raised and demand met, shows that June onwards the country will have more electricity than required. Half of the states will be surplus, while others may face shortage in varying degrees. The NDA government says power surplus scenario as one of its big achievements. Coal output , which was stagnant for years, has increased significantly, helping many stranded power plants start generating electricity. The government has also launched a high¬profile scheme to reform state distribution companies, which are a vital link between power plants and customers.

Experts said that the surplus power situation is an average for the entire country although some regions would still face a small deficit. Also, the surplus indicates that the power demanded by state utilities is being met.

It hides the fact that these state utilities often choose to black out areas to reduce their losses, or due to technical failure. Congress leaders also seek credit for increased supply.

Source: Economic Economics