Indian power output up by 6pct YoY in April as the county lifted its generation capacity to help bridge a shortfall

Reuters reported that India's power output rose an annual 6.78% in April 2011, as the county lifted its generation capacity to help bridge a shortfall in the world's second fastest growing major economy.

The Central Electricity Authority said that about 9.2% to capacity a year to April 2011 to 174.36 GW. Electricity generation last month was 71.66 billion kilowatt hours versus 67.10 billion kilowatt hours in April 2010.

In March 2011, India's electricity generation rose an annual 7.56% to 75.50 billion kilowatt hours. India needs to significantly raise its power generation capacity to reduce peak hour power shortages and provide electricity to millions of rural households. But the Asian nation will miss its target to add 62 GW of capacity over a five year period ending March 2012.India's peak power deficit, the shortfall between supply and demand in peak hours, in April widened to 10.8% from 10.3% in March. Thermal electricity, which accounts for about two thirds of India's power generation and includes using coal, gas and liquid fuel, grew an annual 5.85% in April as gas fired plants operated at lower rate on less demand from clients.

Coal based power generation grew by 9.22% in April from a year ago as 28 power stations had coal stocks of less than 7 days. India aims to import 35 million tonnes of coal in the current fiscal to March 2012, same as year ago.India has the world's fourth largest coal reserves after the United States, Russia and China, but its imported coal requirements have risen due to declining local output.