Sudheer Pal Singh / New Delhi July 21, 2008, 0:11 IST The growth in demand for power coupled with the lag in capacity addition has led to a worsening power deficit in June, according to the data released by the Central Electricity Authority (CEA), an apex power planning and advisory of the central government. Peak power deficit, a measure of the shortfall in electricity when the demand was at the highest level, for the month went up to 12.9 per cent as against 11.1 per cent in the corresponding month last year. Average deficit, the mean of deficit for the entire month, was up to 8.4 per cent as compared with 6.3 per cent in April 2007. POWER DEFICIT UP June May peak deficit average deficit peak deficit average deficit 2008 12.9 8.4 12.9 8.7 2007 11.1 6.3 12.3 8.0 (Source: CEA website) "The yearly increasing power deficit is mainly attributed to the increasing demand in power," said a senior official from the Central Electricity Regulatory Commission (CERC). TRENDS IN IIP (% YOY) VIS-A-VIS POWER Dec07 Jan08 Feb08 Mar08 April08 May08 May07 Power 3.8 3.7 9.8 3.7 1.4 2.0 9.4 General 8.0 6.2 9.5 3.9 6.2 3.8 10.6 (Source: Citigroup global markets report) Total peak power demand for the month was recorded at 103,636 Mw, which was 4,259 Mw higher than the power demand of 99,377 Mw in the corresponding month last year. However, experts believe the worsening power deficit is also an indicator of the declining performance of the infrastructure sector over the past few months. "The growth of the energy sector has dropped due to rise in the cost of raw materials, borrowings and increased interest rates," said an expert with a leading accounting and advising firm, adding that a slowdown in infrastructure always produces adverse affect on the industrial growth. Power, along with five other major sectors