By The Straits Times | Created at 2026-06-24 10:46:44 | Updated at 2026-06-24 12:01:29
1 hour ago
GUJARAT – India has extended an emergency rule to keep Tata Power’s mega power plant in Gujarat operating through the rainy season, as low precipitation is expected to boost electricity demand for cooling and farm irrigation.
The Power Ministry has prolonged the application of a provision of the country’s electricity law, requiring the 4-gigawatt (GW) Mundra power plant to keep running until September instead of June, the company said in a filing late on June 23. The rule empowers the government to force any generating plant to operate in extraordinary circumstances, such as a natural disaster or a threat to national security.
The decision comes as the El Nino weather effect curbs monsoon rains, keeping temperatures elevated and potentially increasing electricity use for irrigation. While heatwaves remain the biggest driver of electricity demand in the country, scarce rainfall in 2023 resulted in a consumption surge during the monsoon period.
“If rains are deficient, which looks like a clear possibility, we are likely to see power demand during the July-September quarter growing by up to 8 per cent compared to the past year,” said Rupesh Sankhe, senior vice-president for research at Elara Capital India.
The low base of 2025, caused by subdued demand in a mild summer, would also contribute to the growth, Sankhe said. Peak electricity demand in 2026 reached a series of new records, settling at a maximum of 270.8GW in May, driven by heatwaves in most parts of the country. BLOOMBERG
