Important Economic Sectors See Positive Impact of Demonetisation

Sectors of Power, Coal and Mines Show Impressive Growth After Demonetisation

Important Economic Sectors See Positive Impact of Demonetisation

By Team EnergyInfraPost  

Impact of De-monetisation On Power Generation 

Power generation growth in November on y-o-y basis was 8.53% as against October when it was 1.27%. As against Electricity Generation of 85.904 billion units in Nov 2015, Nov 2016 witnessed a figure of 93.235 –a growth of 8.53%. However, a month before de-monetisation, the growth in electricity generation in October 2016 stood at 99.709 BU or just a 1.27% increase y-o-y as in October 2015 electricity generation was 98.459 BU.

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Electricity Generation (BU) 2015 2016  Growth
November 85.904 93.235 8.53%
October 98.459 99.709 1.27%

*November figures are provisional

Impact of De-monetisation On Coal production : Coal Production has been better in November than October. State owned, Coal India Ltd saw a 5.5% y-o-y growth in November 2016 as compared to -2% in October.

Coal Production of CIL in Nov 2016 stood at 50 MTE as against 47.4 MTE in Nov 2015. In Oct 2015, as against 44.4 MTE, coal production fell by 2.03% during Oct 2016. Thus de-monetisation helped take up coal production by 5.49%.

 

 

Coal Production (CIL) (MTE) 2015 2016 Growth
November 47.4 50 5.49%
October 44.4 43.5 -2.03%

Impact of Demonetisation On Metals and Mines: The mines and metals sector was no exception.

Aluminium: As compared to October, y-o-y growth in November of production of Aluminium metal from NALCO was 3.34%. Growth witnessed in production by NALCO of Aluminium Metal was 32164 MT in Nov 2016 as against 31123 MT. During the same period in 2015. before demonetisation, this growth was a mere 0.33% in October 2016 when Nalco’s Aluminium production was 32,495 MT as against 32,389 MT production during Oct 2015.

READ  CIL hopes about higher coal demand in FY18

NALCO Aluminium Metal (MT) 2016 2015 Growth
November 32,164 31,123 3.34%
October 32,495 32,389 0.33%

Copper: As compared to October, y-o-y growth in November of production of Copper cathodes was 10.35%.  Production of Copper Cathode stood at 68607 MT in Nov 2016 as against 62174 MT during Nov 2015. Before de-monetisation, the month of October 2016 witnessed a negative growth of 1.14% at 56637 MT as against 57288 MT witnessed during Oct 2015.

Copper Cathode (MT) 2015 2016  
November 62174 68607 10.35%
October 57288 56637 -1.14%

Lead : Even Lead production by HZL increased 30.36% in November on y-o-y basis as compared to -14% in October. HZL Lead production showed an remarkable increase at 13890 MT during Nov 2016 when compared to 10655 MT in Nov 2015.

Before de-monetisation, the growth was down at 11518 MT 14.04% in October 2016 as against 13400 MT in Oct 2015.

HZL (Lead) (MT) 2015 2016  
November 10655 13890 30.36%
October 13400 11518 -14.04%

Impact of Demonetisation On DISCOM Arrears :

In addition to increase in production, there has been a substantial increase in collection of arrears by the state DISCOMs.

  • Distribution Companies collections increased by more than Rs. 3,000 crore from 10th November to 15th December 2016 compared to last year.  The increase in collections is a clear indication of achieving affordable tariffs.
  • For instance, the North Bihar Power Distribution Company saw a 204% increase, NESCO in Odisha saw a 251% increase, APDCL in Assam saw a 97% increase, TANGEDCO in Tamil Nadu saw a 97% increase.

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