Exercises · Q13
Q.What problems are being faced by the power sector in India?
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Start your 14-day free trial to unlock the full solution →The power sector faces insufficient/under-utilised capacity, huge SEB losses from T&D losses and theft, limited private investment, public unrest over tariffs and cuts, and coal shortages at thermal plants.
The power sector in India faces a number of serious problems:
- Insufficient installed capacity. India's capacity to generate electricity is not enough to feed 7-8 per cent annual economic growth. Commercial energy supply needs to grow by about 7 per cent, but India adds only about 20,000 MW a year, and even the existing capacity is under-utilised because plants are not run properly.
- Losses of the State Electricity Boards (SEBs). The SEBs that distribute electricity incur losses exceeding ₹500 billion, caused by transmission and distribution losses, wrong pricing of electricity, other inefficiencies, the near-free distribution of power to farmers, and theft of electricity.
- Limited private and foreign participation. Private-sector power generators, and foreign investors, are yet to play a major role. …
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