The basic function of switchgear is protection, which is an interruption of short circuit and overload fault current,
while maintaining service to unaffected circuits. Switchgear also provides isolation of circuits from power
supplies. Switchgear is also used to enhance system availability by allowing more than one source to feed a load.

Circuit breaker is one of the most important components of switchgear, whose function is current interruption.
The circuit breaker is designed to ‘trip’ in the event of an overload or any type of fault or abnormality in the
system. The circuit breaker ‘senses’ the fault through a protection relay and triggers before damage can occur.

Various types of circuit breakers used are oil, air, gas, hybrid, and vacuum. Each type performs essentially the
same function, with the key difference being their operating mechanism. For example, an oil circuit breaker uses.
oil as a dielectric or insulating medium for arc extinction, while an air-based circuit breaker uses compressed air
to break the arc.

Growth drivers and challenges
Power demand to decline in fiscal 2021 due to Covid-19; revival likely from fiscal 2022

Power demand fell off the cliff in April-May 2020, as economic activity skid to a halt, because of the Covid-19-
induced lockdown. Industrial and commercial demand nosedived during the period, due to a nationwide lockdown
that brought all activities, except essential services, to a standstill, even as domestic power consumption surged,
as most of the population was forced to stay indoors. Agricultural activities, deemed essential to the economy,
continued uninterrupted through the lockdown, thereby insulating demand from the agriculture sector.

Power demand started recovering from June, as the nationwide lockdown was lifted, with a decline of ~16%
registered for the first quarter of fiscal 2021 after a fall of ~23% and ~15% in April and May, respectively. Partial
lockdowns and area-specific restrictions have prevented a full recovery in power demand. Industrial consumption
has been slow to pick up, as weak demand, supply chain disruptions, and labour availability issues have made a
smoother recovery difficult. Commercial demand has been hampered by extended closure of offices and
commercial retail spaces, as well as weak consumer spending amid health concerns and job losses. Domestic
demand remained on the higher side, due to increased usage of electronic devices by residents at home, especially
in summer, whereas agricultural consumption remained largely unaffected.

As the economy slowly switches on amid partial relaxations to the lockdown, power demand is gradually starting
to pick up to near pre-Covid-19 levels. With factories slowly restarting, industrial demand is expected to gradually
revive, even as issues, such as supply chain disruption, labour shortage, and additional burden of safety measures
are slowly ironed out. Power demand from the commercial segment is likely to be on the lower side for a few
months, as employers remain cautious about reopening offices, whereas commercial activities, such as retail,
entertainment, travel, and hospitality are expected to remain closed or witness lower footfalls over the rest of the
fiscal. Domestic power demand is likely to remain slightly higher as people stay indoors, aided by enablers such
as work-from-home, online education, and e-commerce. Agricultural consumption is expected to remain stable
due to its essential status, with the recent influx of migrant population likely to contribute to higher power
consumption in rural areas. Consequently, power demand is expected to fall by (2-4) % in fiscal 2021, with
reduced economic activity acting as a major drag, although domestic and agricultural demand could provide some
cushion.

Power demand is likely to rebound 7-9% in fiscal 2022, as the economy picks up with return to normalcy in the
post-pandemic environment and trickle-down effect of economic relief measures. In the long term, power demand
is expected to be supported by economic growth recovery, expansion in reach via strengthening of transmission
and distribution (T&D) infrastructure, and improved power quality, thereby registering a 3-4% CAGR over the
next five years.

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