Demand for power will grow at a rate of just 6.2 per cent during the 12th Plan period amid the persistent economic slowdown, according to a fresh report by rating agency Crisil.

Crisil said that the growth of power demand from the industrial and commercial segments will be lower on account of weak growth of gross domestic product.

As per the rating agency's estimates, India will likely add 68,000 mw during the 12th Five-Year Plan (2012-17), instead of its target of 90,000 mw; however, even this capacity addition will be faster than the growth in demand for power.

The agency blamed slow economic activity for the estimated low growth of demand for power.

Prasad Koparkar, senior director of industry & customized research at Crisil, said, "Slow economic activity will restrict demand growth, despite an improvement in the financial position of state distribution companies."

Koparkar also noted that demand growth in the past suffered restriction because of generation capacities and limited power offtake from state distribution companies due to their weak financial position.

The report also cautioned that that projects that came up in the past few years would keep on facing challenges on the operational front.