Electricity Output Shows Signs Of Recovery In June

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

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

In the second half of June, electricity generation declined 5.3 per cent, compared with a 14.5 per cent 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 Wednesday, as economic activities resumed after government eased pandemic lockdown restrictions.

State-refiners' petrol and diesel 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 Maharashtra and Gujarat, and Delhi. These regions are among the most affected by the coronavirus.

Power generation from coal - country's primary source of electricity - continued to fall in June. Coal's contribution to overall electricity generation in June fell to 61.6 per cent, compared with 64.2 per cent in May.

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

Overall, renewable energy generation fell 3.8 per cent, mainly due to a 14.7 per cent decline in wind-powered electricity production. Solar-powered electricity output growth more than halved to 5.6 per cent in June, compared with 12.7 per cent in May.