New Delhi, May 13 -- India's power sector is facing a risk of oversupply because of sustained low electricity demand says a report by Fitch Ratings.

"Sustained lower electricity demand growth would increase the risk of oversupply, given rapid ongoing capacity additions," Fitch Ratings said in its report.

The report adds, that India is facing a low electricity demand growth of around 4 per cent for last two years amid rapid capacity additions by power companies.

India's power demand will grow modestly by 4-5 per cent over the medium term, similar to the 4 per cent growth in the fiscal year ended March 2025 (FY25).

The power demand in FY25 has witnessed a drastic sluggishness, declining to almost half than the about 8 per cent growth ov...