Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets will remain closed on May 13, 2021 on account of Id-Ul-Fitr (Ramzan Id).

Are India's power woes hyped?
Tue, 26 Feb Pre-Open

The glaring gap between India's power demand and supply is known to all. But there is no doubt that this gap has been narrowing over time. Going by media reports one cannot be blamed for presuming that Indian power sector is one of the most inefficient, but this is not the entire truth.

Former Union Power Secretary Dr. E.A.S. Sarma, has in an interesting article in business daily, dispelled some of the myths related to paucity of power supply. To begin with, Dr. Sarma, believes that the current method of estimation of power demand is incorrect. That in turn tends to inflate power demand supply gap. Also, he is of the opinion that one should factor in the effects of shifts in fuel and improvements in efficiencies. These trends display the 'per capita useful energy use', something the 'gross per capita energy use' does not take into account.

Further, Dr. Sarma discussed the importance of maintaining a balance between thermal and hydel power. Considering that end power usage is different and varies from users to users, it tends to be more expensive on an overall basis as thermal power generation is more suited for steady requirements. On the other hand, hydro power is mainly used to meet peak demands. As such, he believes that investments in hydro generation have not kept pace. And that this has caused an imbalance.

Moreover, Dr. Sarma believes that setting up new and more efficient generation projects should be considered to reduce wastages and meet geographical requirements. Also given that setting up new plants is not considered as the cheapest option, power prices tend to be high. Eventually, the poor find it difficult to afford. Not to mention that energy security concerns rise on the back of usage of non-renewable resources.

This is where the aspect - that we at Equitymaster have been discussing for a long time - comes into play. We are talking about investments in transmission and distribution (T&D). These have not kept pace with generation investments, therefore leading to huge T&D losses. According to Dr. Sarma, about one-third of the generated electricity is lost in T&D. While investment in generation is necessary - we believe that this aspect has been getting a lot of attention - by the government as well as private players. The media focus in the recent past has been mainly on how generation capacities have not kept pace. We have also seen blame game between the generation and coal supply companies. But the fact of the matter is that a lot of this can be curbed with better and efficient usage of the current infrastructure as well as more efficient consumption by end users.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Are India's power woes hyped?". Click here!


Stock Market Updates

Sensex Trades Over 300 Points Lower, Dow Futures Down by 128 Points (Today's Market)

May 12, 2021 12:30 pm

BSE Sensex is trading down by 328 points, while the NSE Nifty is trading down by 89 points.

GODREJ AGROVET Share Price Up by 9%; BSE FMCG Index Down 0.1% (Today's Market)

May 12, 2021 12:14 PM

GODREJ AGROVET share price is trading up by 9% and its current market price is Rs 577. The BSE FMCG is down by 0.1%. The top gainers in the BSE FMCG Index are GODREJ AGROVET (up 8.5%) and GSK CONSUMER (up 5.1%). The top losers are GILLETTE INDIA (down 0.2%) and ITC (down 0.2%).

Sensex Dips 300 Points, Nifty Falls Below 14,800; Godrej Consumer Zooms 10% (Today's Market)

May 12, 2021 09:30 am

Indian share markets open lower. The BSE Sensex opened down by 325 points, while the Nifty is trading lower by 84 points.

SIEMENS at All Time High; BSE CAPITAL GOODS Index Up 0.7% (Today's Market)

May 12, 2021 09:36 AM

SIEMENS share price has hit an all time high at Rs 2,096 (up 7.5%). The BSE CAPITAL GOODS Index is up by 0.7%. Among the top gainers in the BSE CAPITAL GOODS Index today are SIEMENS (up 7.5%) and HONEYWELL AUTOMATION (up 0.1%). The top losers include CARBORUNDUM UNIVERSAL (down 0.1%) and SCHAEFFLER INDIA (down 0.4%).

CADILA HEALTHCARE at All Time High; BSE HEALTHCARE Index Down 0.1% (Today's Market)

May 12, 2021 09:36 AM

CADILA HEALTHCARE share price has hit an all time high at Rs 640 (up 1.1%). The BSE HEALTHCARE Index is down by 0.1%. Among the top gainers in the BSE HEALTHCARE Index today are CADILA HEALTHCARE (up 1.1%) and ABBOTT INDIA . The top losers include TORRENT PHARMA (down 0.1%) and SANOFI INDIA (down 0.1%).

BLISS GVS PHARMA Share Price Down by 6%; BSE HEALTHCARE Index Down 0.1% (Today's Market)

May 12, 2021 09:34 AM

BLISS GVS PHARMA share price is trading down by 6% and its current market price is Rs 124. The BSE HEALTHCARE is down by 0.1%. The top gainers in the BSE HEALTHCARE Index are SUN PHARMA ADV. RES. (up 2.0%) and AJANTA PHARMA (up 1.9%). The top losers are BLISS GVS PHARMA (down 5.6%) and DISHMAN CARBOGEN AMCIS (down 7.8%).

View More Indian Share Market News

Most Popular

The Next Smallcap Winners(Profit Hunter)

Apr 30, 2021

Price is the only due diligence one might require to buy this business.

Time to Buy Smallcaps?(Fast Profits Daily)

Apr 30, 2021

In this video, I'll show you why I favour smallcaps over the Nifty.

Are the Stock Markets Deaf to Covid Agony?(Profit Hunter)

May 6, 2021

Why are markets discounting the economic impact of Covid?

My Secret to Find Breakthrough Stocks(Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


May 12, 2021 (Close)