The supply of coal proved to be a challenge during the re-opening phase of the economy after the lockdowns. Most of India’s electricity is coal-based thermal power. Therein lies an opportunity for investors. And of course, some firms will grow faster than others. So, we can expect the sector as a whole to grow at this pace.Ĭapacity addition will likely grow at an even faster rate. India’s electricity consumption is expected to grow at about 7% for the near future. They’re rising to the challenge of meeting steadily growing demand. India’s biggest power firms along with their suppliers have already begun this process. Thus, growth will come from an increase in capacity. Now, most power plants in India are running close to full capacity and fuel supply is not a big challenge anymore. The government’s direct intervention was needed to solve that problem. In fact, so sharp was the recovery in power demand, there was a time when coal plants were struggling to keep up. With rapid economic growth comes a rapid increase in electricity consumption. The Indian economy has bounced back strongly from the recession of 2020 due to covid. In that case which sector will take up the mantle of the hottest sector of the year? Could the power sector step up to this challenge? It’s perfectly reasonable to assume that these stocks may take a breather this year or at least slow down their rapid rise. This sentiment hasn’t changed but it wouldn’t be wise to expect the same kind of market-beating performance from d efence stocks every year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |