Power demand in Rajasthan rises, points to economic revival

JAIPUR: At a time when everybody is pinning hopes on economic recovery that would reduce uncertainties around jobs, salaries and business prospects, the rise in power consumption in Rajasthan has come as a relief.
Power consumption, an indicator of economic activity, has been on the rise in the last couple of months after a falling for March and April when the country was placed under lockdown to contain the spread of Covid-19.
Rajasthan is one of the states in the country along with MP, UP and Uttarakhand where energy consumption is bouncing back.

On the other hand, power consumption remains low in more industrialised states.
As per the energy department data, power consumption fell to 5,657 million units (MU) in March this year compared to 6,614 MU in the same period last year. Lockdown was clamped in the country in the last week of March. As the lockdown remained in force throughout April, the consumption fell to 4,757 MU against 6,064 MU in the same month last year .
However, revival started in May after reopening of the economy started.
“Power consumption reflects the level of economic activity taking place. The rising trend points that the economy is on the mend. We expect the rising trajectory to gain further momentum in coming months as companies keep increasing their capacity utilization,” said a senior official of the state energy department.
When contacted, industry representatives said there is a marked improvement, but it will take a couple of quarters to reach the pre-Covid levels. Dileep Baid, an exporter, who also caters to the domestic market, said, “Export demand has been rising faster than domestic sales. The retail stores are still to be operational in full capacity . We hope the coming festival season will generate the demand the industry expects. That would be key for revival of the economy.”
The GST and VAT collections during May, June and July also confirm the uptick in industrial activity as indicated by power demand. In the past two months, collections from both accounts in Rajasthan also exceeded the levels witnessed last year. While there was a moratorium for payment of the taxes till June, officials at finance department had said that despite relief, the collections show an improvement in economic activity.