Mumbai (PTI): Power deficit in the country is expected to fall, owing to good monsoons and increase in generation capacity, the Centre for Monitoring Indian Economy (CMIE) said in a report here.

"With good monsoon expectation and rise in power generating capacity, availability of power is expected to grow faster than demand, thereby leading to a fall in power deficit," CMIE said.

Predicting a good monsoon, despite it being below average in Kerala and Karnataka in the first few weeks, the report said, "hydel power output during the quarter jumped by 30 basis points and good monsoon would likely result in further healthy growth."

The electricity production in the country has marginally grown in the month of June this year, it said.

"During June 2008 quarter, electricity generation in India rose by 1.8 per cent over its year-ago level," CMIE said.

Thermal power output grew by 2.9 per cent but was partly offset by 23.1 per cent fall in nuclear power, the report said.

"The decline in nuclear power generation was due to raw material supply constraints," CMIE said.