India is the third largest producer of electricity and the third largest user of electricity. However, it still has one of the lowest per capita power consumption (1,181 kWh) compared to the world average per capita power consumption, which is close to 2,700 kWh. That is why our nation faces the challenge of ensuring sound financial health for the power sector, which is currently facing a unique challenge, where there is surplus power generation capacity, but there is a lack of adequate distribution infrastructure.
This leads to lower usage of power plants and increased losses in the power distribution system, leading to liquidity stress in the market.
The country is currently grappling with the effects and impact of COVID – 19 hurled across sectors in these difficult times. As power comes under essential services and is exempt from the effects of a nationwide lockdown, utilities across the country have endeavored to provide interrupted supply to all customers.
