According to ratings agency ICRA, the all India electricity demand is witnessing a gradual recovery and stood at over 96 per cent of the pre-covid level in July 2020 and further improved to close to 98 per cent of pre-covid level in August 2020, mainly led by recovery in rural areas.
As per an ICRA note, the electricity demand recovery on an all-India level has largely been led by the northern and eastern states with year-on-year (Y-o-Y) increase of 6 per cent- 13 per cent in demand in July 2020. This was mainly driven by rural consumption, while the demand in large industrial states witnessed a 6 per cent- 15 per cent decline in July 2020 on a y-o-y basis, on back of slower recovery in industrial activity. Also, the recovery in the all-India demand in August 2020 is on a lower base, considering the demand decline witnessed on a y-o-y basis in August 2019.