ICRA forecasts a growth of 5-5.5% in the total power demand for FY24

02 Jun 2023 CW Team

ICRA, a leading ratings agency, anticipates a growth rate of 5-5.5% in electricity demand for the fiscal year 2023-24. This projection is lower than the robust demand growth of 9.6% witnessed in the previous fiscal year. The lower growth is attributed to unseasonal rains impacting consumption during the summer months. Despite being slightly below the expected gross domestic product growth rate of 6%, the projected demand growth remains higher than the historical average over the past decade. ICRA also notes that the possibility of El Nino in FY24 may positively influence electricity demand.

The previous fiscal year experienced a surge in demand due to a severe heat-wave, a favourable base, and an economic recovery. ICRA predicts that sustained demand growth will enhance the prospects of signing new power purchase agreements for thermal independent power producers. The agency also forecasts an improvement in the all-India thermal plant load factor from 64.2% in the previous fiscal year to 65.1% in the ongoing financial year.

In FY23, average spot power tariffs in the day ahead market of the Indian Energy Exchange remained high at Rs 5.9/unit. This was primarily due to substantial demand growth, constraints in coal supply, and elevated open market coal prices. While prices are expected to moderate in FY24 with improved coal supply and a moderation in demand growth, tariffs are still projected to remain higher at Rs 4.5/unit compared to the long-term average of Rs 3-3.5/unit. Furthermore, the coal stock level for domestic power plants stands at a satisfactory 13 days as of May 15, 2023, compared to 8 days during the same period in the previous year.

Infrastructure Urban

07 Jul 2026

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Air India and SIAEC to Explore MRO Joint Venture in India

Air India and SIA Engineering Company (SIAEC) have signed a memorandum of understanding (MoU) to explore the formation of a maintenance, repair and overhaul joint venture in India. The MoU, signed on Friday, will examine collaboration to develop India as a global aviation MRO hub and to serve growing needs across the Indian and regional markets. SIA Engineering Company, part of the Singapore Airlines Group which holds a 25.1 per cent stake in Air India, will bring technical expertise alongside Air India's established airline operations network. The partnership builds on existing cooperation be..

Assam and Centre Review Aviation Projects Push Silchar Airport Approval

Assam and the Centre on Thursday, July two reviewed a series of aviation infrastructure projects aimed at strengthening air connectivity across the state, with the proposed greenfield airport at Silchar emerging as a key priority. The review formed part of broader efforts to position Assam as a major aviation and logistics hub for the north east. Officials outlined timelines and preparatory work that they said would guide the next stages of project approvals. The Chief Minister met the Union Civil Aviation Minister at Rajiv Gandhi Bhavan in New Delhi and described the meeting as very productiv..