Indian reservoirs narrow deep deficit after rains

Water levels in India's 81 main reservoirs rose slightly more than usual over the past week as monsoon rains revived, but at less than half last year's levels still posed a major risk to power supply and winter crops.

Shrinking water level in key reservoirs has already hit hydropower supply and limits the water available to irrigate winter-sown rapeseed and wheat crops which will be harvested next year, although government scientists say they would be worried only if water level is low at the end of August.

Water level in the main reservoirs stood at 20.731 billion cubic metres in the week to July 16, down 51.6 percent from the same time last year, government data showed.

The previous week reservoirs had shrunk to just 16 bcm, a 57 percent deficit versus a year ago. Mid-summer is normally the seasonal low point for India's reservoirs before monsoon rains begin to replenish them for the next few months.

In the week to July 15, total monsoon rains in the country were above normal for the first time this year, but still deficient in many northern regions.

"Risks of a drought in 2009 remain despite good rainfall in the first fortnight of July," Mumbai-based Kotak Institutional Equities said in a note on Friday.

Hydropower supply in India, which accounts for a quarter of India's total generation capacity of 149,400 megawatts, is already down 10 percent from a year ago due to low rains, the head of the Central Electricity Authority said on Thursday. link....