Why power-surplus Gujarat is switching off factories before Diwali

Gujarat is cutting electricity to factories because demand has surged beyond readily available supply. The disruption comes just before Diwali, when textile, engineering and other businesses usually work intensely to complete orders. The cuts affect designated industrial feeders for eight hours, from 4 pm to midnight.

The timing matters because the evening is the grid’s most difficult period. Solar generation disappears after sunset, while cooling, irrigation, industrial activity and festival-related electricity use remain high. Gujarat’s peak demand reached 29,822 MW on October 16, up 36.6 per cent from the same period last year.

The immediate dispute is about scheduling. SGCCI wants one weekly eight-hour shutdown after 7 pm, while the distribution company favours a 6 pm start. Rajkot engineering units have chosen Wednesday as their shutdown day. The government is arranging coal and short-term power purchases, but longer-term storage and generation projects will not help this Diwali.

An industrial feeder is a local electricity distribution circuit that supplies power to several nearby industrial consumers. It connects those factories to the wider grid through a controlled distribution point. The article does not define the term, but this standard grid arrangement explains why one feeder can affect many businesses at once.

When the distribution company switches off a feeder, every factory connected to it loses supply temporarily. That immediately removes the factories’ electricity demand from the grid. It is a faster emergency measure than waiting for new generating capacity, especially during hours when demand is higher than available supply.

In Gujarat, designated industrial feeders are being switched off from 4 pm to midnight. The eight-hour cuts are intended to manage the evening shortage, but they halt production and threaten festive-season orders. SGCCI wants the shutdown after 7 pm, while Dakshin Gujarat Vij Company Limited favours starting at 6 pm.

Gujarat’s power squeeze is unusually large because demand rose sharply while several important sources weakened. Peak demand reached 29,822 MW on October 16, compared with 21,822 MW during the corresponding period last year. That is a 36.6 per cent increase, placing heavy pressure on the state’s power system.

Demand across September and October was about 12 per cent higher than in previous years, or nearly 4,000 MW more. Agricultural consumption alone peaks at nearly 12,000 MW a day. At the same time, hydropower declined after below-normal rainfall, and lower wind speeds reduced wind generation.

The wider national system is also tight. On October 19, the Central Electricity Authority reported critically low coal stocks at 96 of India’s 191 coal-based power plants. Gujarat has announced outages and arranged additional supplies, but its planned storage and new generating units will arrive years after this Diwali crisis.

Electricity demand rose because Gujarat stayed hot after a weak monsoon, increasing the need for cooling. State statements also cited El Nio, higher irrigation demand, extended all-night Navratri festivities and stronger industrial activity before Diwali. Agricultural demand alone reaches nearly 12,000 MW a day.

Generation fell because the weather also weakened renewable and water-based supply. Hydropower, usually strong in October and November, declined after below-normal rainfall in Gujarat and neighbouring states. Lower wind speeds reduced wind generation as well. Solar power could not support the evening period because it falls to zero after sunset.

This created a difficult mismatch: electricity use climbed precisely when some supply sources became less available. Coal- and gas-fired plants had to cover the peak from 5 pm to 11 pm. Limited battery storage, with only 192 MW operational, left the grid with few ways to shift surplus daytime electricity into the evening.

Evening power cuts stop machinery during the hours when factories would normally be producing. Textile looms, engineering workshops and other industrial units lose working time, making it harder to complete orders and dispatch goods before Diwali. The disruption comes while Gujarat’s textile sector already faces slow demand, sluggish business and delayed payments.

The scale of the risk is substantial. SGCCI estimates that livelihoods of roughly 2.5 million workers in south Gujarat are at stake. A weavers’ leader estimates textile production losses at Rs 300 crore a week. Engineering units in Rajkot have adopted Wednesday as their designated shutdown day, while some factories are keeping one shift closed.

The cuts could deepen festive-season trade problems. Traders have not achieved expected business, and delayed production may further postpone deliveries and payments. Businesses are negotiating over timing, but longer-term projects will not be ready this season. The government is trying to secure power while limiting the damage to industry.

The government is using several short-term measures to keep electricity available during the shortage. The Centre has assured Gujarat of an additional 10 to 11 coal rakes a day until November. Allocations are expected to increase to 13 to 14 rakes afterward. More coal should support coal-fired plants during the tight period.

Gujarat has also arranged short-term power purchases. These total 2,990 MW in October, 1,740 MW in November and 1,335 MW in December. The chief minister directed the energy department to accelerate demand management, improve availability and strengthen capacity planning.

Demand management means reducing or shifting consumption when the grid is most stressed. Consumers have been urged to avoid electricity use between 5 pm and 11 pm. Industrial feeder outages are another direct tool, although businesses want them scheduled later. These steps may ease pressure, but they cannot immediately replace weaker hydropower, wind generation or limited storage.

The evening peak is difficult because electricity demand remains high after solar generation stops. Gujarat’s crucial peak runs roughly from 5 pm to 11 pm. Cooling, irrigation, household use and industrial activity continue, but solar power falls to zero after sunset. Coal- and gas-fired plants must therefore supply more power at the same time.

Different sources can balance this pattern in different ways. Hydropower and gas can help respond when demand changes, while coal plants provide large amounts of steady supply. Wind can add electricity when conditions are favourable. Batteries can store excess daytime electricity, including solar power, then discharge it during the evening peak.

Gujarat currently has only 192 MW of operational battery storage, so its ability to shift power is limited. A 500 MW/1,000 MWh battery project is scheduled for March 2027. An 800 MW Ukai unit is expected in September 2029, and the first nuclear unit is projected for 2032. These projects come too late for this Diwali.