Coronavirus impact | India's electricity output shows signs of recovery in June

India’s electricity generation recovered slightly in June, driven by increased power consumption in industrial western states, provisional government data showed.

The power generation in June fell 9.9 percent, a Reuters analysis of daily load despatch data from federal grid operator POSOCO showed, compared with a 14.3 percent decline in May.

In the second half of June, electricity generation declined 5.3 percent, compared with a 14.5 percent slide during the first fifteen days of the month.

Prime Minister Narendra Modi has been citing electricity consumption to show there are “greenshoots” in the Indian economy.

India’s unemployment rate more than halved in June compared with May, data from a private research firm showed on July 1, as economic activities resumed after the government eased pandemic lockdown restrictions.

Indian state-refiners’ gasoline and gasoil sales rose in June compared with May, continuing with a gradual recovery. Manufacturing activity contracted at a much shallower pace in June, suggesting the worst may be over for the economy, at least for now.

The recovery in power demand in the second half of June was largely led by higher consumption by industrial regions such as western states of Maharashtra and Gujarat, and Delhi in the north. These regions are among the most affected by the coronavirus.

Power generation from coal - India’s primary source of electricity - continued to fall in June. Coal’s contribution to overall electricity generation in June fell to 61.6 percent, compared with 64.2 percent in May.

India’s hydropower supply grew at coal’s expense - rising 24.3 percent, compared with 3.6 percent growth in May, while gas-fired power output was over 20.5 percent, the data showed.